Silver Price Analysis – Silver Continues to See Volatility

Silver Technical Analysis

Silver has gapped lower to kick off the trading session on Monday, but has turned around to show signs of life. Ultimately, this is a market where the buyers will still be looking for dips to pick up a little bit of value. This is a market that I think will remain somewhat bound, though, and therefore I am not expecting huge moves at the moment.

Market Volatility and Technical Levels

Longer term, I think the $70 level is an area that a lot of people will be watching, as it is a floor from the previous consolidation region. The 50-day EMA above offers a bit of resistance but opens up the path to the $80 level.

The interest rates in America continue to be somewhat elevated, and that is part of what has driven silver down, and those are driven by the idea that the war has not been concluded. As long as we have that concern, I think it is very difficult for traders to get overly aggressive in risk appetite, especially with something like silver.

There is a supply issue out there, so I do think ultimately, we resolve to the upside, but it could take quite some time to make that happen. In the meantime, I look at this as a market just simply squeezing between the 50-day EMA and the 200-day EMA underneath, offering a bit of value on dips, but probably not something you want to get too big in at the moment because of all the headline risk. Small positions are probably going to be preferred for the time being.

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