Silver Price Analysis – Silver Gives Back Gains for the Week

Silver Markets Weekly Technical Analysis

The silver market did spike at one point during the trading week, but has given back all of those gains to show weakness as we are below the $80 level, and of course, interest rates are spiking in the United States. It does make a significant amount of sense that the silver market may fall apart and go looking to the $70 level.

The $70 level is the bottom of the range that we had been in and I think it does kind of lend itself to the possibility that the market is just going to stay in the same range and perhaps even, if rates continue to climb, break down below it. If it does, it could open up a move all the way down to the $64 level, where the 50-week EMA resides.

Macro Factors and Supply Concerns

If we turn around and rally from here, the $80 level is the short-term resistance barrier, but I think the real one is closer to the $90 level. I think you can expect to see a lot of noisy back and forth trading, but I also recognize that we are in an environment where the next headline coming out of the Middle East could move us in either direction.

A lot of traders are very concerned about the supply situation, as the Strait of Hormuz being closed does greatly influence not only silver but a lot of other commodities and how they move around the world. So as long as that’s an issue, it does put a little bit of weight around the neck of silver. Longer term, I think we have a situation where silver rallies because of a lack of supply, but right now everybody’s focusing on energy shocks and the Middle East.

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