Silver Price Forecast – Silver Continues to See Ceiling Above

Silver Markets Technical Analysis

The silver market has been hanging around the $30.50 level over the last 24 hours as we wait for the Federal Open Market Committee announcement which of course is the Federal Reserve’s interest rate decision, but perhaps more importantly, we’re also paying attention to the press conference afterwards to get a bit of a heads up as to what the Fed may do with interest rates. Remember, the silver market of course is a precious metal, but it’s also an industrial one.

So, we also have to pay attention to whether or not industry is demanding more and more silver, which from a longer term perspective, it most certainly is some type of recession, silver could take a little bit more of a beating than gold would in that scenario due to the fact that industrial demand would of course fall.

Keep in mind that silver is extraordinarily volatile, so you have to be cautious with your position sizing, something that I try to remember to bring up in every silver analysis piece that I do, because quite frankly, yours truly has taken a bit of a beating from time to time, getting a little aggressive in this market.

This is not a market where you trade aggressively because when you’re wrong, you end up being very wrong. However, at this point, I think you may be setting up a potential buy on the dip scenario, and therefore I’d be very interested in the $30 level, and then again at the 50-day EMA in buying gold on the cheap as it were.

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