Silver Price Forecast – Silver Continues to See Bullish Pressures on Dips

Silver Markets Technical Analysis

Silver rallied a bit during the early hours on Wednesday, breaking above the $28.50 level. Breaking above here is a bit of a victory, but we also have to worry about the Federal Reserve coming out later in the day, and that obviously will have a major influence on the US dollar interest rates and therefore the silver market as well. Nonetheless, it does look like we are trying to recover, and it’s worth noting that the last couple of days have been strong, so I still think that the overall proclivity of the market is to rally, but you may be looking for short-term dips in order to take advantage of.

To the upside, we have the 50 day EMA right around the $29.38 level. If we can break that, I think that brings in more FOMO. It’s probably worth noting that we pulled back to the 50% Fibonacci retracement level before bouncing, so that’s a healthy sign as well. Whether or not that holds, we’ll have to wait and see, but I do think this is a scenario where traders begin to dip their toe in the water.

If the Federal Reserve is more dovish than anticipated, that probably sends silver much higher. If they’re hawkish or suggest that rate cuts are not coming, it’ll be interesting to see what that does. That will almost certainly cause some type of pullback. Either way, the trend is still up. It’s been a very noisy couple of months now, but when you look at it from the beginning of the year, we are still significantly higher than we were and now have gained about $5 an ounce, even with the massive correction that we had seen.

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