Silver Price Analysis – Silver Stalls Near $60 Resistance as Death Cross Looms Large

Silver Technical Analysis

The silver market rallied slightly during the trading session here on Wednesday, with the $60 level offering a little bit of resistance. It’s a large, round, psychologically significant figure, and we have seen a 50-day EMA drop below the 200-day EMA, showing the death cross. The death cross, of course, is a negative sign for traders who are more long-term based.

That being said, it’s interesting with rising interest rates, we are still trying to rally in silver, and we are seeing the overall market trying to ignore the interest rate situation in America. As long as that ends up being the case, I think you will get a little bit of volatility and push and pull, but it’s hard to argue with the idea that silver is in a downtrend because of this. This is a market that is trying to turn things around, but will have a lot of work to do to change the overall attitude.

Death Cross Signal and Interest Rate Pressure

Exhaustion probably brings in fresh selling. As far as buying is concerned, it’s not impossible, obviously, but it is definitely swimming upstream still, based on the most recent action. I am looking at this market, and it looks very choppy at a major point of inflection right now, so it is a market that I think is going to capture a lot of attention. This market is on the precipice of making a bigger decision, but we have to be careful and wait to see the conclusion of this decision before confidence is strong.

If you’d like to know more about how to trade gold and silver, please visit our educational area.