Silver Technical Analysis
The silver market has rallied a bit during the early part of the trading session here on Friday, as we are now testing the 200-day EMA and the 50-day EMA as well. The flat EMAs suggest that we are likely to see sideways behavior as traders see it as “flat.”
Silver Hates Rising Interest Rates
Ultimately, this is a market that is still dealing with interest rates being noisy and positive. The 50-day EMA, as well as the 200-day EMA, both remain fairly flat, and it does suggest that the market may stay in a little bit of a range. If we can rally from here, then the $70 level above is, I believe at least a ceiling. Breaking above that would be a major turn of events, just as a breakdown below the $63 level would be a major breakdown. At that point, it could open up a drop to $60 pretty quickly.
Interest rates being as high as they are continue to cause a problem here, and with the silver market being so sensitive to interest rates, we’ll have to watch that. But ultimately, this comes down to a market that is in huge demand but, at the same time, has a little bit of a headwind. I think we will continue to compress, as those Middle Eastern headlines do not help.
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