Silver Price Analysis – Silver Marks Fresh Lows as High Rates Punish Bullion

Silver Technical Analysis

The silver market has struggled during early trading on Friday as we continue to see the downward pressure just overwhelm the market. Ultimately, this is a market that is punishing non-yielding assets due to the fact that a lot of traders can simply collect a little bit of interest coming out of the treasury markets instead of paying to store something like silver, which can be expensive.

Silver has made a fresh new low, and now many traders will have their sights set on the idea of $50 being tested. $50 is a very important level going back to the 1970s, and therefore, it does set up a very interesting spot in the market, as it had until recently been a massive resistance barrier for silver traders. This is an area that has been important, and could continue to be.

Technical Death Cross Threatens Long-Term Structural Support

The fact that we broke above it and then just took off toward the $120 level without a serious pullback until recently suggests that maybe people are going to be looking at that area. I think at this point in time, any rally has to be looked at with suspicion. It’s just a market that buyers continue to get burned in.

It’s also worth noting that we are kicking off the so-called death cross, which is the 50-day EMA breaking below the 200-day EMA. That will attract a certain amount of attention in and of itself as well. This looks like a horribly bearish market, and it would take something special to turn this market around in this environment.

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