Silver Price Analysis – Silver Continues to Test the Rectangle

Silver Technical Analysis

The silver market has fallen a bit during the early hours on Tuesday, but it does look like we are seeing a little bit of pushback here, just above the $70 level. This is an area that I have said previously that I thought could be the bottom of the overall trading range that we are in, but we will have to see whether or not that actually ends up being the case.

The 50-day EMA above could be a bit of a short-term barrier, right along with the $80 level. But I think the top of the range, at least as things stand right now, is actually the $90 level above, and it has proven itself to be reliable at the moment.

Market Support and Technical Barriers

If we were to break below $70, I think that would be a sign that we are probably dropping even further and perhaps down to the 200-day EMA, currently right around the $56.60 level.

I do think silver has a lot to work through after that horrific drop several Fridays ago, and that type of trauma does not heal instantly. The best-case scenario that I have for silver right now is that perhaps we are trying to find some type of sideways action that will allow us to build up confidence.

That means we probably go sideways for a while. While I am still thinking silver will find its way higher eventually, the question is whether or not we can hold this little region. If we can, then we have some kind of hope for a continuation of the bullish behavior eventually.

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