Silver Price Analysis – Silver Gives Back Gains Early on Friday

Silver Technical Analysis

The silver market initially rallied a bit during the trading session on Friday but found a bit of resistance at the 50-day EMA and turned around to go a little bit of negativity.

Interest rates in the United States continue to be very elevated and as long as that’s the case, it’s very difficult for the market to take off to the upside. If we could break above the 50-day EMA, we could open up a move to the $80 level, especially if rates start to rise. If rates start to drop again, then we may see a little bit of a bounce.

Volatility Management and Key Support Levels

One thing about silver that you have to be aware of is that volatility makes it such that you must keep your position size reasonable. Silver is a great way to lose money if you are not careful, and as long as that is going to be a feature of this market, that is the most important thing to pay close attention to.

The $70 level, of course, is an area that is important to watch from a longer-term standpoint, but even if we break down below there, then you’re talking about testing the 200-day EMA, which should be supported. If we were to break above the $80 level, then it opens up a move to the $90 level, possibly, but we would need to see massive shifts in the way that the bond market is behaving. Right now, it looks like everybody’s trying to price in the idea of energy inflation.

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