Silver Weekly Price Analysis – Silver Defends $60 Level as Strong Dollar Weighs

Silver Weekly Technical Analysis

The silver market continues to defend the $60 level, and it did so successfully this past week, as it looks like we are trying to do everything we can to bounce. That being said, we have started a downtrend. We have lower lows and lower highs. So, as things stand right now, unless something changes pretty drastically with the fundamental situation, I’m actually looking to short silver. That doesn’t mean that I will do it right away, and it doesn’t mean that I would do it with a huge position, as the leverage can get you hurt fairly quickly.

Interest Rate Sensitivity and Structural Resistance

But this most certainly looks like a market that will probably face some problems near the 50-week EMA at $64.30 and then possibly again at the $67 level. If we were to break down below the $57 level, then I think it opens up a move down to the $50 level. Ultimately, this is a market that will remain very volatile and very sensitive to interest rates as well as a strengthening US dollar.

I’ve got no interest whatsoever in trying to get too cute here. I will trade small, but I recognize that if we were to break above $70, then the uptrend continues from a longer-term perspective. And longer term, I do think that silver goes higher, but I also recognize that we have gotten so overdone that a massive sell-off might be what this market needs in order to digest some of those selling orders that have been so aggressive.

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