Silver Price Faces $70 Breakout Test With $65 Support in Focus

Silver Technical Analysis

The silver market has been somewhat positive during the early part of the trading session here on Wednesday, but has found the $70 level to be like a brick wall again. Ultimately, this is a market that continues to see a lot of back-and-forth type of grinding trading, with the $70 level a bit of a short-term ceiling. If we can break above the $70 level, perhaps even the $71 level, that might give buyers a little bit of momentum in this environment to go looking to higher levels and recapture the overall uptrend again.

The $70 Resistance Level and Jackson Hole Catalyst

A pullback from here could have the market testing the 200-day EMA near the $65 level. This is a market that remains very noisy, and this makes a certain amount of sense as there are a lot of questions about Federal Reserve policy. The PCE numbers came out as expected early in the session, and now markets will start to focus on the speech at Jackson Hole by Kevin Warsh, Chairman of the Federal Reserve, for clues about the next policy move. This will be an important speech to watch for most traders out there.

If the Federal Reserve starts to sound a little bit more dovish, that could provide a little bit of fuel to the fire here for silver to continue correcting. If the Federal Reserve Chairman sounds hawkish, that could be a problem. So, the next couple of days could very well be important for the future direction of this market. Until we get resolution, it might be a bit difficult to trade with confidence.

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