Silver Weekly Price Analysis – Silver Has a Bad Week, Again

Silver Weekly Technical Analysis

The silver market gapped lower to kick off the trading week, only to turn around and rally a bit, filling the gap, and then fell apart. We are below the crucial $60 level, and the $60 level is an area that I think was important. The level will continue to be an area that a lot of people will be watching. Now it looks like if we continue to drop from here, the $50 level could be the next target.

One of the things about the $50 level that you need to be aware of is that it has been important multiple times, going back a couple of decades, and even all the way back to the 1970s. So I think it would make a certain amount of sense if silver works its way down there. That being said, we are bouncing from the very lows, so we’ll see if that can have any momentum attached to it.

Weekly Technical Outlook and Long-Term Trends

If we break above the $60 level, we could recover towards the 50-week EMA at the $64 region. But ultimately, as long as the US dollar remains fairly strong, I think silver struggles, as the negative correlation is well-known.

Long-term, I like silver a lot. The supply and demand situation still favors higher pricing, but that doesn’t mean we have to have it this week. So, I think we continue to see more of a somewhat skeptical market when it comes to silver, and I think rallies are probably looked at with suspicion, as the selling pressure has been so relentless in this market.

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