Silver Price Analysis – Silver Looking to Find Buyers on Thursday

Silver Technical Analysis

The silver market did try to rally at the beginning of the Thursday session but failed to follow through. I think at this point in time, it’s worth noting that silver is just simply trying to tread water above the $80 level.

It’s also worth noting that the 50-day EMA sits just below the $80 level and therefore it offers a bit of support. Keep in mind that just a couple of weeks ago we had a massively traumatic candlestick form in this market and the type of drop that we had seen, almost 33% at one point, really puts an imprint on the market.

Consolidation Patterns and Resistance Levels

It looks like it’s just running out of hot money. That being said, if we do go sideways for a while, I think that’s the best thing for the market. I think it could open up the possibility of people finding value, but to think that people are just going to jump in with a fistful of dollars at the moment is a little bit reckless because of just how reckless the market had been previously.

The $70 level looks to me like a massive floor in the market. So, as long as we can stay above there, I think there’s a chance that we will find a new consolidation pattern with the $90 level above being a major resistance barrier.

The $80 level right in the middle is a magnet for price, and I think that continues to be the case here. Buying on the dip would be possible, but I’m not looking for a big move anytime soon because the last thing you want to see is another impulsive move to the upside.

If you’d like to know more about how to trade gold and silver, please visit our educational area.