Silver Price Analysis – Silver Drifts Lower to Find Buyers in Thin Trading

Silver Technical Analysis

The silver market has fallen pretty significantly during the early part of the trading session on Friday here, but we’ve turned around to bounce. It looks very much like a market that I think continues to see a lot of noise around the 200-day EMA, and then down to the $60 level. Interest rates dropping in America might help silver eventually, but I find this interesting: we are starting to break away from that correlation a little bit, and that is something worth paying attention to, as we are changing regimes at the moment.

If we turn it around and rally here, the 200-day EMA offers resistance just as the $70 level should. If we find ourselves dropping, the $60 level will almost certainly be a significant floor in the market, and I think we have a situation where if we were to break down below there, it’s obvious that the market really unwinds to sell off significantly, as it would be a massive breach of support at that level, and could cause chaos.

Technical Outlook and Key Support Levels

Ultimately, I think we are in the middle of trying to find the bottom here, and we’ll have to see how that plays out. It does make a certain amount of sense that we have a scenario where traders are probably afraid to hold silver into the weekend. And of course, the holiday Juneteenth was on Friday, so the hours that were traded were shorter than usual. With this, I only read so much into the daily candlestick.

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