Silver Price Analysis – Silver Struggles at Same Place on Wednesday

Silver Technical Analysis

The silver market has shown itself to be very hesitant to break above the $90 level, and that is something that we’ve seen multiple times here. The question at this point is whether or not we can truly break out above the $90 level, and really, at this point in time, I think there are a lot of questions out there about what happens next because, quite frankly, there’s a lot of risk appetite destruction out there and that doesn’t really help silver in general.

Silver is not a safety asset; it is an industrial metal. It is a metal that moves inversely to the US dollar quite often, so therefore I think you have a lot of trouble in general to deal with. Short-term pullbacks at this point in time could open up the possibility of a move back down to the 50-day EMA where I would expect to see buyers and supporters.

Technical Outlook and Support Levels

If we break down below there and by extension the $80 level, then we could go looking to the $70 level. The $70 level is the floor in the overall consolidation. I do think that silver has more of an upward tilt to it, so buying dips could be a way to play this market but you’re going to have to be very cautious as silver is much more volatile than gold.

Quite frankly, in this environment, gold really is the play; it’s not silver. Silver is still reeling from that traumatic Friday about 5 or 6 weeks ago that wiped most of the retail trading population out. So, with that being the case, be very cautious, but I do think that there are buyers underneath.

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