Silver Price Forecast – The Silver Market Continues to Wait for FOMC
Silver Price Forecast Video for 21.09.23
Silver Markets Technical Analysis
Silver has initially pulled back just a bit during the trading session on Wednesday, but then turned around to show signs of life again. That being said, we are currently trading between the 50-Day EMA and the 200-Day EMA. That being said, the market seems as if it is trying to sort out where to go next, and the fact that the FOMC meeting is later during the day certainly has an effect on that as well.
Ultimately, this is a scenario where we will have to make a bigger decision, and it will almost certainly be due to the statement after the meeting. If the Federal Reserve sounds extraordinarily hawkish, that could be negative for silver, and of course if the Federal Reserve sounds like they may be thinking about switching their tone, then it’s possible that silver can take off from here.
All of this being said, the market is likely to pay attention to the overall consolidation area, with a $22.50 level underneath offering support. Above, we have the $25.50 level offering resistance, and as we are closer to the bottom than the top, it does make a certain amount of sense that you would favor the upside. If we were to break down below the bottom of the range, then it’s likely that we could go down to the $20 level underneath. On the other hand, if we break above the 50-Day EMA, then you could see the market go toward a $25.50 level, but it may take some time. A break above that opens up the possibility of a move to the $26.50 level.
The fact that the last 2 candlesticks have been conflicting with each other tells me that the market is just trying to sort out what it wants to do, and with that being the case it does make quite a bit of sense that we will see volatility. In a very volatile market, especially one as typically volatile as silver, it pays to be cautious with your position sizing and only build up the position as the market moves in your favor.
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