Silver Price Analysis – Silver Looks to Defend $60

Silver Technical Analysis

Silver initially plunged during the trading session on Thursday, but we have seen a turnaround, and it does look like we are going to see a bit of a bounce back. And it does make sense because the $60 level has been crucial for some time. Bouncing from here opens up the possibility of a move to the 200-day EMA and a resistance barrier.

That being said, I do think that we have a situation where the market will continue to move on interest rates and, of course, the latest shocks or lack of shocks coming out of the Middle East. So ultimately, I think this is a situation where traders are going to be very cautious. I think you have to be very careful with your position sizing. It does look a little oversold, so I think maybe a little bit of a bounce over the next couple of days makes some sense.

Market Range and Technical Thresholds

But if we give up the $60 level to the downside, that would be catastrophic. That probably opens up $50. I begin to question now whether or not we are in the midst of trying to expand the range, possibly down to the $60 level, with the $90 level above being the ceiling.

We have to wait and see, but this will all come down to risk appetite and interest rates because, quite frankly, the demand for silver is much higher than the supply. It has been for years, so I think that opens up the possibility of value here. But again, it’s the leverage in silver that you have to be very cautious with, so make sure your position size is correct.

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