Silver Price Forecast – Silver Continues to Look For Momentum at Lows

Silver Markets Technical Analysis

In the silver market, we have seen a lot of sideways action over the last couple of days, and it looks like we are just killing time. That does make a certain amount of sense as the Federal Reserve has a meeting on Wednesday and obviously that will have a major influence on the US dollar, which in turn will have a major influence on silver. As things stand right now, I do think we’re in the process of trying to find the bottom, but if the Federal Reserve suddenly gets aggressive in its tightening policy, we could see the market drop down to the 200-day EMA, which sits just above the crucial $26.50 level, an area that’s been important more than once.

On the other hand, if the Federal Reserve starts to suggest that they are getting ready to cut aggressively, the $28.50 level is an area worth paying attention to because it had previously been both support and resistance. If we can leapfrog that and go higher, it’s likely that the market will continue to go much higher. In general, I believe this is a situation where traders will have to make a bigger decision, but we’re basically in the middle of the range between $26.50 and $28.50, so we’re at a major inflection point. I do think the Federal Reserve could kick momentum back into this market though, the question of course is going to be whether or not the momentum will be up, or down.

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