Silver Weekly Price Analysis – Silver Faces Collapse Threat on Weekly Chart

Silver Technical Analysis

The silver market is showing signs of collapse on the weekly time frame as we have made a fresh new low, and it does, in fact, look like a market that just can’t get out of its own way. Because of this, it is going to perhaps attract longer-term traders in the sense that they may be bailing out at this point. Clearly, we have collapsed from the high as we have lost more than half of the value of silver. This is a shocking turnaround for many who got caught up in the mania last year.

That being said, the area near $50 looks to be rather supportive based on historical resistance there, going back multiple times into the 1970s. As a result, it’ll be interesting to see how the market behaves when we get down there because, quite frankly, that would be a massive level in this market to pay close attention to.

High Yields and Bearish Momentum Deepen Silver’s Decline

At this point, rallies are probably going to be looked at with suspicion as we are getting fairly close to $55. High yields in the United States have a major part to play here, as it’s easier to hold a yielding asset than it is a non-yielding asset like silver. This will likely continue to be the story here in silver, just like gold as well.

Regardless, this is an ugly-looking candlestick and an ugly-looking market, which most decidedly has turned bearish over the last month or so. This is a market that has caught many people on the wrong side of the market.

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