Silver Price Analysis – Silver Sees Buyers of Dips

NEW YORK (March 4) The silver market has rallied a bit early on Wednesday as it looks like the 50-day EMA is, in fact, going to hold as support. You should also keep an eye on the fact that the $80 level sits just underneath and that could very well end up being a bit of a floor for the market as well.

Ultimately, I think this is a situation where the market is doing what it can to hang on to any type of upward momentum, but in the short term, I think it is going to be very noisy. It is worth noting that the last couple of sessions have been rather bad and it does look like silver is probably going to underperform gold in general. I think we’re going back to normal market behavior.

Yes, there’s still the potential of people getting excited about AI data centers needing silver or something like that, but quite frankly, that bubble’s been popped. So now the question is, can we go sideways for a while before picking up momentum or will we eventually fall apart?

Support Levels and Market Sentiment

If we break down below the $80 level, it could open up a move down to the $70 level, an area that is a significant support level that’s been tested multiple times. If we were to break down below there, things probably get rather ugly.

In the short term, though, I think it’s a lot of back-and-forth, choppy, minute-by-minute trading. I don’t think we have any real clarity and with everything else going on around the world, including the war, all eyes are basically somewhere else. I expect a somewhat neutral to slightly negative attitude here.

FXEmpire