Silver Price Analysis: Silver Continues to Pressure the Resistance Barrier

Silver Technical Analysis

Silver initially did pull back during the trading session on Thursday but seems to have found support near the 50-day EMA. By doing so, it attracted enough buyers to come in and push it towards the top of the same consolidation area that we have been in for what seems like a lifetime. The $34 level above continues to be massive resistance, and I am watching that area because if we can finally break above it, that opens up the possibility of a move to the $35 level pretty quickly. Underneath current trading, we have the $33 level, which is essentially acting as fair value, and over the last week or so support. If we break there, then we go down to the $32 level, where we see even more support.

I don’t have any interest in trying to short silver at the moment, but breaking below $32 means that you have to rethink the entire situation. Ultimately, I think this is an area that a lot of people continue to look at as a nice short term area to play around in. But whether or not it is a market that you can trade for a bigger move remains to be seen. If you are a short term trader, a lot of range bound trading has been able to be had here.

And I think you probably have been taking advantage of it. And that being said, you still need to be cautious with your position size because silver does get very nasty at times and of course very volatile, so be cautious. Patience is a better part of valor here. So, pay close attention to these two levels and trade accordingly, but recognize there’s probably more support and more upward pressure than downward.

For a look at all of today’s economic events, check out our economic calendar.