Silver Price Analysis – Silver Looking to Break Higher Again

Silver Technical Analysis

The silver market has rallied a bit during the early hours here on Friday as it looks like we are trying to break out to the upside. Whether or not we can get to the $100 level remains to be seen but certainly I would not be betting against it at this point.

Keep in mind that there is a new fundamental factor out there that’s coming into the picture, that is the violence in Mexico. Could it disrupt some silver supply? That is possible, but we’ll just have to wait and see. Short-term pullbacks, I think, continue to be buying opportunities, and I do think that we are gradually trying to break out of what was a consolidation area, offering a little bit of a reprieve after the massive, traumatic selloff we had several weeks ago.

Support Levels and Market Outlook

The $80 level features the 50-day EMA as well as psychology due to the large round psychologically important figure and I think that’s your short-term floor. If we were to break below there then the $70 level is a major support level as well as the bottom of the recent range.

Ultimately, this is a market that I think remains bullish. I just don’t want to see it go parabolic again because, quite frankly, we saw how that ended last time. Parabolic markets tend to hurt a lot of people on the way back down. Hopefully, we’ll get more of a grind to the upside of something that’s a little bit more sustainable. Clearly, this is a market that you can either be on the sidelines or be long of. I don’t see any way to short it.

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