Silver Price Forecast – Silver Markets Finding SupportSilver markets have fallen initially during the trading session on Wednesday as we await the FOMC statement. Ultimately though, the silver markets have had a rough patch early in the week, but it looks like the buyers are coming back in.
Silver markets have found a little bit of support during the trading session on Wednesday, as we continue to see a lot of noise. Silver pulling back the way it has is of course a bit overdone in the short term, but with the volatility out there, it will probably continue to be more of the same. At this point, the market looks at the 200 day EMA as support, sitting just below the $17.00 level. Ultimately, the market should continue to find buyers on dips, as there are a lot of concerns out there when it comes to the global growth situation. Furthermore, the FOMC Statement could come out and rock the markets.
SILVER Video 30.01.20
Looking at this chart, you can see that the $18.00 level is an area of interest, and if we can break above there it’s likely that the market then goes looking towards the $19.00 level. Having said that, the market was to break down below the 200 day EMA, it would be very negative and could unwind the overall push higher that we have seen lately. The FOMC being more dovish than anticipated should send the silver markets much higher, right along with gold which of course will be the first place people look to put money in that situation. Expect a lot of noise, but it’s very likely that the markets will continue to be very difficult but remember that the market is extraordinarily sensitive to risk appetite and interest rates, so keep your position size rather small. I would not be short of silver regardless, at least not until we get a daily close below the 200 day EMA.
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