Silver Price Analysis – Silver Fails at Major Ceiling

Silver Technical Analysis

The silver market has pulled back just a bit during the early part of the trading session on Thursday as the $90 level continues to be an area of importance. This area of $90 is at the top of the overall range with the $70 level being at the bottom.

Ultimately, I think you’ve got a situation where we just don’t have the momentum to break out to the upside. I do think that there’s more pressure to the upside than the downside and I like the idea of buying short-term pullbacks to find a little bit of value here.

Short-Term Pullbacks and Technical Support

The 50-day EMA sits right around the $80 level, and I think all things being equal, this is an opportunity for buyers to get involved in what probably is continuation. But keep in mind that the horrific sell-off that we saw a couple of weeks ago still has its imprint on the market, and that does, of course, have a major influence.

If we were to turn around and break down below the $70 level, I think at this point, I’m convinced more than ever that a move below that level really wipes this market out. Even if we were to do that, though, I think the one thing you can probably take away from this is that the low in silver won’t be where it was previously, which, after the last major sell-off that we had seen years ago, was somewhere around $12.

I don’t think we’re ever seeing that again, not after what just happened. So, really at this point, I think you’re looking at a short-term pullback and then buying on the right-hand side of the V type of situation.

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