Silver Price Analysis: Silver Continues to Face Serious Pressures but Offers Opportunity

Silver Technical Analysis

Silver initially did try to rally a bit, but as we were sitting just underneath the crucial $34 level, the Tuesday morning featured a lot of selling more than anything else. This is a market that’s been in a range for quite some time. So, it does make a certain amount of sense that the $34 level continues to see a reaction. If we could break above the $34 level, then I think it really lets the silver market take off to the upside, perhaps to the $35.50 level.

On the downside, if we do in fact break down from here, then the $32 level will be targeted as a potential support level, an area that’s been very reliable as of late, so it all makes sense. And anything below there, of course, would bring the 200-day EMA into the picture, which obviously a lot of traders will be paying attention to. Keep in mind that silver is an industrial metal as well as a precious one, so it doesn’t always move in lockstep with the gold market.

That being said, the gold market sold off pretty nastily in the early part of the session as well. So, I think a lot of this comes down to the fact that the US dollar really took off during the session. And in this environment, it just works against the value of certain commodities. Nonetheless, we are in a very strong uptrend in most metals over the last several months and despite the fact that silver is flattening out a bit, I still favor buying the dips looking for value in a market that clearly, despite the fact having sold off viciously in April, has found its footing and now is just looking for the next catalyst.

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