Silver Price Analysis – Silver Drops from Resistance Region

Silver Technical Analysis

The silver market initially tried to rally a bit during the trading session on Tuesday, but it looks like we have gotten a little overdone. And of course, at the same time, the 10-year yield has risen again and that of course works against the value of silver.

Pulling back from here does make a certain amount of sense because, quite frankly, risk hasn’t gone anywhere. We are getting close to the top of the overall range between $70 on the bottom and $90 on the top.

Bond Yield Pressures and Range Dynamics

The market right now looks like it could head back toward the $80 level, an area that is in the middle of that range, and therefore, I think a lot of people look at it as potentially fair value.

All things being equal, if we do break above the $90 level, then it opens up the possibility of a bigger move toward the $100 level. But we’ll just have to wait and see how that plays out.

The $70 level underneath is the floor in this market, and I don’t see us breaking down below it, but I do recognize that we spent a lot of time down there previously, so it would not be surprising at all to see this market try to get back to that area.

Ultimately, the 50-day EMA sits just below the $80 level as well and that is something worth watching. But I think silver, the big takeaway, is almost always the same no matter what the day is, that’s to keep your position size reasonable because silver is so extraordinarily volatile.

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