Silver Price Analysis – Silver Looking for Find Stability After Recent Trauma

Silver Technical Analysis

The silver market has rallied a little bit during the early hours here on Friday as we continue to see a lot of noise overall. I think given enough time though, we will have to make a significant decision whether or not we can continue to go higher or if we have in fact seen the top previously.

I think it is probably more likely than not going to be a situation where traders are going to look at this through the prism of a market that is simply going sideways and trying to find out where the bottom is. Right now, the bottom looks to be at the $70 level, but if we were to break down below there, then it could open up a deeper correction down below the 200-day EMA all the way to the $50 level given enough time.

Market Corrections and Support Levels

Quite frankly, we have seen silver spike like this a couple of times in the past and it always ends horribly, and then we eventually find the floor. The silver market floor will not be the same as it was last time; it is not going to be $12. That is the question.

I do not think it is so much whether or not we take off to the upside right away. I do not think we do; I think that would be the worst thing that could happen. Right now, the most bullish scenario that I see is a little bit of sideways action in order to work off some of the trauma from a handful of Fridays ago when we got that nasty candlestick. $70 looks to be support, $90 looks to be the ceiling, and $80, where we currently sit, is essentially fair value.

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