Silver Price Analysis – Silver Continues to Trade Between Two EMAs

Silver Technical Analysis

The silver market has fallen a bit during the trading session here on Wednesday as there are a lot of questions about the interest rate markets and whether or not those rates will continue to climb. They are starting to turn to the upside.

Ultimately, the 50-day EMA, I believe, is a significant resistance barrier. If we can break above the 50-day EMA, it could open up the possibility of a move to the $80 level short-term. Pullbacks I think offer the ability for finding value, especially near the $70 level.

Technical Resistance and Interest Rate Factors

The 200-day EMA sits right there as well, and I think ultimately this is a scenario where you are looking at a possible opportunity to trade in a very short-range going back and forth.

That being said, if we were to break above the $80 level, silver can take on $90, but I think a lot of this is going to come down to interest rates, whether they are rising or falling. There is a negative correlation and that will continue to be the case going forward. This has been the case for some time now, as traders are kind of “stuck” at this point in time.

I do believe longer term silver is extraordinarily bullish, but right now we’re just focused and locked in on the idea of what’s going on in the Middle East and that has a major influence on the bond market. I’m bullish, I like buying dips, but I’m also realistic, doesn’t look like we’re going anywhere in the short term.

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