Silver Price Analysis – Silver Continues to See Upward Pressures

Silver Technical Analysis

The silver market gapped higher to kick off the trading session on Tuesday, only to fall significantly before bouncing again. At this point, it looks like we are trying to do everything we can to break above the $90 level, which is a large, round, psychologically significant figure and an area that I think will continue to be important as it is the top of the current consolidation.

If we can break above the $90 level on a daily close, then I think silver has the ability to go higher, probably looking toward the psychologically crucial $100 level. Short-term pullbacks open up the possibility of a move down to the $80 level, with the 50-day EMA sitting right there as well.

Recent Market Trauma and Outlook

Breaking down below there then opens up the possibility of a move to the $70 level, which I see as the bottom of the range right now. Keep in mind that this is a market that has faced a lot of trauma recently and, really, at this point, the best that you can see is some type of consolidation, some type of confidence building in this market after that horrific candlestick several Fridays ago that I imagine probably wiped out quite a few accounts and possibly even firms.

So, with that being said, I think you remain a little bit buy on the dip here, maybe waiting for a little bit more of a correction to take advantage of, or a clean break of the $90 level. At that point, the market will more likely than not really start to accelerate.

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