Silver Price Analysis – Silver Continues to Threaten a Big Breakout

Silver Technical Analysis

The silver market has broken above the $90 level early during the trading session on Wednesday, as it looks like we are threatening a breakout of an area that I think is very important.

It is worth noting that silver has recently seen a dramatic sell-off and now we have been going sideways. I think that is exactly what you want to see and I do recognize that the area around $90 is very difficult to overcome.

If we do break above $90 on a daily close, it opens up a move to the $100 level and quite frankly, based on the measured move, we could see silver reach towards $110 again. Now, that does not necessarily have to be quick; it does not necessarily have to be something that happens soon, it is just the projected measured move from the breakout.

Market Support and Sustainability

Pullbacks at this point in time should continue to see support near the 50-day EMA and the $80 level, which sits just above there. I think the downside is probably somewhat limited, although I am not willing to jump all right away because of what we have seen recently.

One would have to think that there are a lot of accounts that are no longer viable at this point. They have been liquidated, and therefore, those traders are not involved, so I think this is more sustainable if we start to break out as long as we do not do it too quickly.

If we do it too quickly, then you have to worry about yet another massive blowoff top. Ultimately, you want to buy dips. The question is, will you be forced to pay a higher price if we break out.

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