Silver Has Rallied Early on Wednesday to Jump Across the 200 Day EMA Again

Silver Technical Analysis

Silver has rallied early on Wednesday to peak above the 200-day EMA for the third day in a row, and it’ll be interesting to see if that continues. But at this point, traders continue to push the issue. Interest rates are slipping a little bit early in the session, but we also have CPI coming out, and that could have a major influence as well.

The $70 level above is an area that previously had been both support and resistance, so it’s an area that could very well end up being a target or at least an area of interest. Short-term pullbacks will be looked at as potential buying opportunities by those who have been bullish over the last couple of weeks.

Fed Expectations and Technical Levels

We’ve recently broken out of a fairly significant consolidation area with the $60 level offering a little bit of a floor. Ultimately, this is a market that tends to be very sensitive to interest rates, so we’ll have to watch that to get a read on any attempt at that correlation coming back to the situation, as well as the US dollar. If it strengthens, it sometimes works against the value of silver.

Traders are still trying to figure out what to do about the idea of the Federal Reserve and rate hikes later this year, and that is being reflected in the price of silver as well. This is a market that I like longer term, but I also am aware of the influence from external places that continue to be a major issue here. I am watching the US dollar and the US interest rates for clues in this market.

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