As the FOMC Announcement is due later on Wednesday, there is a lot of trepidation about trading silver. That being said though, the technical analysis is relatively straightforward, as the uptrend line sits right roughly at the 50 day EMA as well. Just above, the $18.00 level offer significant resistance, as the large, round, psychologically significant figure has caused some issues. All things being equal, the market has been in an uptrend for some time so one would assume typically that the trend continues.
SILVER Video 31.10.19
During the month of August, silver had gained 15% and since then has gone back and forth during the last several weeks to drift slightly lower and reach towards the trendline. Having said that, the market has done that in the last few days, and then drifted a bit higher. Beyond that, the hammer that formed during the training session on Tuesday has showed signs of strength yet again, and at this point it’s likely that we will continue to grind higher overall.
In looking at this chart, a rally makes quite a bit of sense, because we have pullback to find value. At this point in time, the market could go as high as the $20 region over the longer term, but obviously it’s going to be very noisy between here and there. Alternately, if the market to break down below the 50 day EMA, the market will probably reach towards the $17 level where I would expect to see buyers as well. Break down below there could change everything, but right now that looks to be very unlikely.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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