Silver Price Analysis – Silver Starting To Build A Floor
DevinSilver starts to stabilize: traders watch $80 support and $70–$50 downside risk while aiming for a measured rebound rather than a sharp rally.
Key Points:
- Support emerges near $80: Silver is attempting to carve out a floor, with the $80 level and the 50‑day EMA offering initial support. Traders hope for a measured recovery toward $100 rather than another impulsive rally.
- Downside risk to $50 persists: A drop below $70 could see the metal retest the long‑term $50 breakout point. This scenario explains why caution and disciplined risk management remain essential.
- Recovery may be slow: Friday's sell‑off scarred the market; wide stops and small positions are prudent as confidence rebuilds. Still, the current stabilization could signal the start of a gradual rebound.
Silver Price Analysis – Silver Starting to Build a Floor
Silver continues to search for a bottom after last Friday's wipeout. Although prices are stabilizing, caution remains warranted in this volatile market.
Silver finds support near $80 and the 50‑day EMA
The silver market rallied slightly during early Tuesday trading as the $80 level — and the 50‑day exponential moving average — provided support. Traders see short‑term dips as buying opportunities as the metal tries to grind back toward the $100 mark. However, analysts caution that a slow and steady advance would be healthier than the impulsive behaviour seen previously.
Source: TradingView
Market scenarios and recovery outlook
There remains a distinct possibility that silver could fall below $70 and retest $50, a level that served as a ceiling for decades. The market broke out above $50 without retesting it, so some traders are watching for a pullback to that region.
Last Friday's dramatic candlestick has left the market scarred, and confidence may take time to rebuild. Wide stop losses and smaller position sizes are advised to manage risk: the last thing you want is to be caught in another large move and see your account evaporate. Despite the uncertainty, the recent stabilization represents a promising start to a potential recovery.
