Silver Technical Analysis
The silver market has fallen pretty significantly during the trading session here on Monday as interest rates continue to rise in places like the United States, Germany, etc. This does put downward pressure on non-yielding assets such as silver, and we’ve seen that play out quite nicely during the session.
The $60 level below will end up being a potential target, a potential support level. It is a large, round, psychologically significant figure in an area where we’ve seen some action previously.
I don’t necessarily look at this as a market that I’m wanting to get overly aggressive with, but I do recognize that there’s probably more downward pressure than up. Longer term, I still like silver. The reality is that silver does not have enough supply in any given year to really wipe out demand, and that’s only going to get worse with AI, the electrification of the economy, etc.
So, with all of that being said, this is a market that I think we have to look at through the prism of whether or not the $60 level ends up being a massive floor. If we break above the 50-day EMA and the 200-day EMA indicators, then it could open up a move to $70, but I don’t see that being a situation we run into very quickly.
I think short-term traders probably look at this as a fade-the-rally market. This market is one that I think has a long way to go to the upside, but we have a lot of work to do to see the longer-term possibilities play out over time.
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