Silver Technical Analysis
The silver market continues to see a little bit of upward pressure, and it may have gotten a little bit of help from the Bank of Japan sounding a little less than completely convinced about further rate hikes. Therefore, rates around the world have stayed fairly calm.
Silver, of course, being a non-yielding metal and a non-yielding asset, has a particular vulnerability to higher rates. In this environment, with rates seemingly staying in a somewhat well-defined range in multiple countries, it gives silver a little bit of coverage for buyers to jump in and take advantage of it, as this is a market that has a longer-term bullish situation in the physical world.
Whether or Not We Stay in This Range Remains to Be Seen
It is worth noting that we have been trading between the $60 level on the bottom and the $70 level on the top. The $70 level on the top should still continue to be significant resistance, if the charts are to be believed, but it also makes for a nice target for those trying to push silver to the upside.
To the downside, we have the $60 level as support, but the $63 level has shown itself to be supportive as well. All things being equal, silver looks as if it is still very much in a range, and that range has been defended. So, I anticipate more of the same action, but a break above the $70 level could be a big deal.
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