Silver Price Analysis – Silver Continues to Threaten Resistance

Silver Technical Analysis

The silver market has gone back and forth in rather choppy trading on Wednesday in the early hours, as we are trying to determine whether or not we are ready to break above the top of the consolidation area that we have been in for so long. The market has been stuck between the $32 level at the bottom and the $34 level at the top. If we could break above the $34 level, then it opens up a move toward the $35.50 level. That’s where we had seen massive selling pressure previously and taking out that candlestick really opens up the floodgates to a potential big move higher.

Ultimately, I think this is a situation where you have to look at this through the prism of a market that is going to continue to be a bit noisy, but given enough time, I do think that you have the possibility of that breakout. I just don’t know how that is going to play out, timeline-wise. And as you probably can see, it does look like the buyers have stepped in to try to at least support the market near the $33 level. And the last couple of pullbacks were a bit shallower. So that is a positive sign for those who are bullish. A breakdown below the 50 day EMA could change the short-term attitude of the market.

But it would really, at this point, I think, open up the possibility of a retest of $32, which really doesn’t change anything. So ultimately, I believe this is a market that is just going to continue to grind and try to sort out whether or not we can pick up the necessary inertia to go higher. So, a breakout obviously is something that you’ll be paying attention to, but I would also be paying attention to short-term pullbacks as potential buying opportunities as well.

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