Silver Weekly Price Analysis – Silver Rallies for Second Week in a Row

Silver Weekly Technical Analysis

The silver market has been positive this past week but did give back some of the more stretched gains. That being said, it’s a good look so far. We’ve had a couple of weeks here of recovery, and silver looks as if it is trying to turn things around.

Interest rates have dropped a little bit over the last couple of weeks, so that helps as well. But ultimately, this is a market that still is going to have a lot of external factors come into play. The situation in the Middle East is the most obvious one, because it has such a major influence on bond markets and the yields coming out of places like the United States.

Macro Pressures and Support Levels

There are also questions now about how the Federal Reserve will react to certain things, and whether or not interest rates are going to rise quickly anymore. At one point, there was the thought that they might get a little bit aggressive. It’s still, I think, a little early to tell, but the latest economic information out of the United States has been that the economy is slowing down a little bit. But really, this has only been in the last few weeks, so we’ll have to wait and see if that actually holds.

As things stand right now, a couple of green candles in a row is a good sign, but we’re a long way from forming another swing high. And one would think that the $70 level above probably has some psychology attached to it as well as market memory from both support and resistance on lower time frames. So we’ll see how that plays out.

Underneath, we have the 50-week EMA, which we are sitting on. We have the $60 level and the $55 level, all potentially offering support.

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