Silver Price Analysis – Silver Tests $60 Level as Death Cross Confirms Trend

Silver Technical Analysis

The silver market has gapped higher to kick off the trading session on Monday as interest rates have dropped, offering a little bit of relief for these non-yielding assets. That being said, we find ourselves hanging around the $60 level, which is an area where a lot of large round, psychologically important aspects of the markets come into play. And with that being the case, I think we have a market that’s dancing around an area that causes some headlines.

We’ve recently seen the 50-day EMA break down below the 200-day EMA, kicking off the so-called death cross, and that, of course, is a signal that a lot of longer-term traders look at as very bearish, and can sometimes attract algorithmic traders as well.

Death Cross and $55 Support Test Weigh on Long-Term Trend

The market recently tested the $55 level for support, where it bounced, but we can see a series of lower highs and lower lows on the chart, although it has stabilized somewhat in the recent past. The headlines coming out of the Middle East will continue to be influential as to where we go next, and with that, I think this is a market that will remain very noisy.

Over the longer term, we should go looking to the overall momentum to pick up and eventually break out of this malaise. The question, of course, is which direction? Unfortunately, this is a market that, like many other markets, has to contend with erratic headlines that influence inflation coming out of the Middle East. And as long as that’s the case, it’s hard to trust anything.

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