Silver Price Analysis – Silver Continues to See Support

Silver Technical Analysis

Silver has found itself drifting lower to kick off the trading week but has since turned around to show signs of life, and I think at this point in time, you have to watch the $80 level very closely. The $80 level has been both support and resistance in the past, and I think a lot of people will be watching this level very closely. If we can break above there, then the market more likely than not will go looking to the $90 level as it is the top of the larger and longer-term consolidation range.

Support Levels and Interest Rate Influence

Below we have the $70 level offering support with the 200-day EMA just below there offering support as well. Ultimately, I think this is a market that continues to be very noisy, but I do like buying dips. I do think that the lack of supply for silver will continue to be a major driver of where we go next, so be aware of that potential issue going forward.

If we were to break down below the 200-day EMA, then you could see a drop pretty significantly from there to at least the $60 level, but the only way I see that happening is if interest rates start to scream higher. So, watch that 10-year yield in the United States. All things being equal though, longer term, I am very bullish on silver in the long term but recognize that the interest rates will continue to be a stumbling block at times.

If you’d like to know more about how to trade gold and silver, please visit our educational area.