SLV

Silver Price Forecast – Silver Continues to Drift Lower to Support

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Silver Markets Technical Analysis

Silver initially did try to rally a bit during the session here on Wednesday, but still looks as if it’s got a lot of downward pressure to chew through. At this point, we are waiting on the FOMC statement, press conference, interest rate decision, and all of that noise, and therefore, it’s not a market you want to be involved in. We are approaching the crucial $26 level, which of course has been significant resistance previously, and also features the 50 day EMA, which comes into the picture for some type of technical support. But if we give that up, goodbye to silver is what you’ll be saying.

Quite frankly, I think the next 24 hours could be crucial for thesilver market because unlike gold, it’s not really a precious metal, at least not in the same sense. People don’t necessarily run to it for safety. If interest rates stay higher in America for longer, then it makes a lot of sense that silver will take it on the chin.

The $28.50 level above is a major barrier going back multiple years and as a result, this pullback made sense. Now, the question of course is, what do we do with the $26 level? And at this point, we just don’t know. With this being the case, it is a market that I think you will have to continue to look at through the prism of whether or not we can hold this important support barrier. If we don’t, then it just slips right back into the trading range it’s been in for several years.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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