Silver Price Analysis – Silver Gaps Higher as Buyers Defend $60 Floor

Silver Technical Analysis

Silver gaps higher to kick off the trading week on Monday as we are well above the $60 level. The question now at this point in time is whether or not we can continue to recover. We have dropped since then, but that being said, I think you also have to look at the $60 level as a potential floor.

If we continue to see buyers on dips, then I think, given enough time, market participants will try to go looking to the 200-day EMA at the $67.15 level. This is an area that I think will be difficult to break above, and I would look for exhaustion there.

Resistance Hurdles and Downside Risks

If we break down from here, watch the $57 level. It’s an area that, breaking down below there could open up the possibility of a drop to the $50 level. This is a massive level going back multiple decades, so it will attract a lot of headlines.

Ultimately, this is a market that if we break it down from here, we watch the $57 level. Ultimately, this is a market where I think, given enough time, market participants will try to go looking to the 200-day EMA at the $67.15 level. If we break down from here, watch the $57 level, it’s an area that breaking down below there could open up the possibility of a drop down to the $50 level.

Ultimately, I think the $60 level is a potential floor. I like the idea of fading short-term rallies that show signs of exhaustion. This could be the play, but as usual in the silver market, you will have to be cautious about the position size you use.

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