Silver Price Analysis – Silver Stalls as $60 Level Acts as Magnet

Silver Technical Analysis

The silver market is sitting just below the $60 level, an area that is a large, round, psychologically significant figure, and one that I think a lot of people will be watching out of pure interest. The $60 level has recently been a market magnet, if you will, it’s just right in the middle of this consolidation.

Because of this, it’s possible that we have a bit of sideways action continuing as we’ve seen over the last couple of weeks. And it’s very likely that traders will continue to take a look at this market with a little bit of concern. This is a market that doesn’t look like it knows what to do in this environment.

Macro Pressures and Bearish Technical Crossovers

Keep in mind that interest rates are elevated, and generally speaking, the historical correlation is higher interest rates, lower silver, but that is also exacerbated by a stronger US dollar, which we have had recently, against almost everything out there.

From a technical analysis standpoint, I’m looking at the 50-day EMA getting ready to cross below the 200-day EMA, something that has already happened in gold as a potential death cross. This is an indicator setup that most traders consider bearish, so with that being the case, I think you continue to have to wonder whether or not we need some type of external factor to get moving. It looks to me in my analysis that a very flat and sideways market is what we are dealing with, and there’s nothing on the candlestick early on Wednesday that suggests that has changed in the silver market.

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