Silver Price Outlook – Silver Waits for FOMC on Wednesday

Silver Technical Analysis

Silver continues to see a little bit of bullish pressure, but we are basically sideways during the trading session on Wednesday, which makes sense considering we are waiting for the FOMC statement later in the day and that of course will have a major influence on what happens with the US dollar, which in turn has a major influence on what happens with silver. I think at this point in time, you are more likely than not going to continue to see more of a buy on the dip attitude. Any pullback at this point in time will probably see a lot of support through the previous daily candlestick, as we have seen such interest and momentum by the bulls in this asset.

The $35.50 level underneath there is also massive support. So, I would pay attention to that as well. With that being said, the market is likely to continue to be one that is looking for some type of value that we can go racing into. Silver is an industrial metal as well as a precious metal. So, because of this, I think you’ve got a scenario where silver is primed to go looking to the $40 level. I have no interest in shorting silver. I believe silver is far too strong and I think that will continue to be the case going forward, but it is a very volatile market. So, position sizing will be crucial as usual, as the moves can be wild to say the least.

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