Silver Weekly Price Analysis – Silver Looking to Bounce Back

Silver Weekly Technical Analysis

The silver market has dropped a bit during the course of the trading week, only to bounce at the 50-week EMA. Ultimately, this is a market that I think is in the midst of trying to find its floor, and it’s probably worth noting that interest rates have been drifting a little bit lower, so the question is, will we see the interest rate markets drive silver back to the upside? We’ll just have to wait and see. It does seem like the correlation between lower rates and higher silver is starting to break down by itself.

Technical Analysis and Support Levels

But when I look at the technical analysis, I can clearly see that the $60 level is a massive support level. Ultimately, this is a market that I think, if and when it bounces, it gives us an opportunity perhaps to start buying, but we need to see the $60 level prove itself as massive support. If we were to break down below the $60 level, it could open up a move down to the $50 level, but right now, I think you’re probably more likely than not to see a short-term bounce.

The real question is going to be whether or not we can break above the $70 level, because if we can, that could send this market to the upside. Ultimately, expect a lot of volatility and be cautious with your position sizing, as it could get very messy in the short term out there. Headline risks and interest rates will continue to play a part in this market as well.

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