Silver Price Analysis – Silver Rallies in Thin Holiday Session

Silver Technical Analysis

Silver has rallied during the trading session on Monday, which, of course, was Memorial Day in the United States and a major holiday in several European countries. So, with that, the volume was almost non-existent, and I would not make a huge deal about the price action. In fact, half the day was shut down anyway.

Technical Levels and Geopolitical Drivers

What I do recognize is that the $80 level continues to be a bit of resistance and we are struggling to get above there. If we can get above there, then it’s possible that the market might go looking to the $90 level, but we’ll have to wait and see.

Short-term pullbacks I think are likely, and those short-term pullbacks will probably end up being buying opportunities. But unfortunately, silver is being moved by the latest headlines in the Middle East, which, of course, we don’t really know what to think of.

While the United States is saying that a deal seems to be fairly close, we’ve heard this before, only to be let down, and that would send silver right back down. And it is because of this that I think you have to be very cautious with your silver position size.

The market is still in the same range it’s been in for a while with $70 on the bottom and $90 on the top. But it does look like we are starting to pick up a little bit more interest in buying these dips.

That does make a certain amount of sense because if and when we finally reach an agreement, the reality is that there is a lot of demand for silver and the supply just isn’t there yet. So, there’s an underlying fundamental reason for silver to be very bullish.

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