Silver Price Analysis – Silver Drifts a Touch Lower Early on Wednesday

Silver Technical Analysis

Silver initially rallied only to give back gains. The silver market broke above the $80 level initially during the trading session on Wednesday but then gave back the gains to fall back below it. All things being equal, this is a market that continues to be moving on interest rates and this is something that I’ll be watching very closely; the 10-year yield of course is something that I watch quite often.

We are just above the 50-day EMA so I think it could offer a little bit of support, but I would also expect to see a lot of noisy behavior. If interest rates in the United States starts to pick up, then that will put a lot of pressure on silver.

Market Ranges and Value Zones

Ultimately this is a market that I think is still in the process of trying to turn things around, but I think it will continue to be very noisy and that’s essentially how things play out. All things being equal, I think we are still trying to figure out where the next range forms, which would make sense considering how volatile we have been for months.

If it is the same as it was before, $80 is the midway point, maybe fair value if you will. I would not be surprised at all to see that be the situation. If we pull back towards the $75 level, I’ll be looking for a bounce to take advantage of as it could be a bit of value in this market. Anything below $70 would be extraordinarily negative.

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