Silver Price Forecast – Silver Continues to Grind Back And Forth

Silver Markets Technical Analysis

Silver pulled back ever so slightly during the trading session on Tuesday. This does make quite a bit of sense considering that we are close to the top of the range and therefore a little bit of hesitation and a pullback makes quite a bit of sense.

The $24.50 level underneath could be support, followed by the $23.50 level. Keep in mind that the Federal Reserve has a meeting on Wednesday and that will have a major influence on precious metals, including silver, but also interest rates, which also has a knock-on effect on silver. With that being said, this is a market that I think you still need to be bullish on, but you need to be cautious in the next 24 hours. I would love to see some type of pullback that I can take advantage of in order to find value, but right now it appears that we are in an area that you probably want to be somewhat cautious.

That being said, it is a one direction type of buy only market, but I also recognize that you need to be very cautious with your position sizing, which is typical for silver anyway. Quite frankly, silver is so volatile that you just really can’t get overly aggressive in any scenario. So, with that being the case, I’m hoping to find value, I’m hoping to take advantage of it, and I quite frankly won’t hesitate. With that being the case, this is a market that I’m going to sit on my hands until we get through the Federal Reserve, and then perhaps place a trade.

The $26 level above is a massive resistance barrier that I think a lot of people will be paying attention to. And if we can get beyond that, then I think you have a situation where traders will start to FOMO into this market. But right now, I don’t see that happening.

For a look at all of today’s economic events, check out our economic calendar.