Silver Price Analysis – Silver Struggles to Find Momentum

Silver Technical Analysis

The silver market has gone back and forth during the trading session here on Friday as traders continue to watch the silver market hang around the 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of people will watch for the trend, and the fact that we see this market hanging around the 50-day EMA yet again is not a huge surprise, considering that there are a lot of questions about silver in general.

After all, there are a lot of concerns out there when it comes to risk appetite, and silver is quite frankly a somewhat risky market. Below the 50-day EMA, we have the $80 level, which is a large, round, psychologically significant figure and an area that has shown itself to be supportive more than once recently.

Psychological Support and Risk Appetite

If we were to break down below there, then we could open up a move down to the $70 level, which is the bottom of the previous consolidation region. All things being equal, this is a market that I think remains more or less a buy on the dip type of scenario but it’s going to take some type of jump into risk-on behavior to get silver to break above $90 again.

Again, it’s not that I want to short this market, it’s more like I want to buy dips, but I also want to do so very carefully. This is a market where position sizing is something you need to be aware of, as there are a lot of volatile moves just waiting to happen in this market.

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