Silver Price Analysis – Silver Lacks Volume on Monday as Americans Away

Silver Technical Analysis

The silver market continues to see volatility on Monday, but keep in mind it’s Presidents’ Day in the United States, and that will have a major impact on liquidity. In fact, it’s very possible that the majority of traders didn’t even bother with the opening of their chart.

With that being said, I think you have to look at this as a scenario where the fact that the day closes about halfway through in the United States means that although there will be some action here, there just won’t be a lot. I think the charts show that.

I think a lot of overseas traders don’t really grasp how much of a difference it makes when the United States is closed in the futures market. If you’re trading in the CFD market, it doesn’t really matter because it’s going to be influenced by this as well.

Technical Support and Downside Risks

With that being said, it does look like a gentle sloping pattern towards the $70 level could be achieved here, where I would expect to see support. If we can hold the $70 level as a floor, then I think that’s a good sign. I think eventually we will bounce again.

If we break down below $70, then I think it opens up an even deeper correction. The silver market was traumatized by a massive amount of selling pressure several Fridays ago, and it just hasn’t gotten off its back since then.

It hasn’t broken down much further at any given point, so that’s a good sign I suppose. Now I think we’re just in this area where we’re going to have to contemplate what the next move’s going to be.

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