Silver Price Analysis – Silver Sits Near $80, Again

Silver Technical Analysis

The market has been very noisy in early Monday trading as we continue to hover around the psychologically important $80 level. The US dollar has softened a bit later in the session, and that is helping silver a bit, but interest rates are also rising, and that does kill some of the joy for silver because, quite frankly, you can hold electronic or paper assets instead of storing silver to collect a return.

If silver does break above the 50-day EMA, though, it could open up a move to the $90 level. The market is still technically in an uptrend, but it has gotten so far ahead of itself that it’s not a huge surprise to see all of this sideways action. In fact, the longer this goes on, the better it ends up being, I believe, for the longer-term health of silver.

Silver Support and Resistance Targets

If we fall from here, the $70 level should be massive support, while the $90 level above should be massive resistance. We’re basically where I suspect fair value is at the moment and that of course has its own influence on the market and how it will behave.

Ultimately, I like buying dips, I just don’t want to get too heavily involved in the silver market because position sizing is about the only thing you can control and a market like this is extraordinarily volatile under the best of circumstances. And with the war going on, inflation, central bank questions, let’s be honest here, this is not one of the best situations to trade silver in. I remain bullish and optimistic but not massively so.

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