Silver Price Outlook – Silver Continues to See Sideways Action

Silver Technical Analysis

The silver market dipped a little bit during the early hours on Tuesday, but really at this point in time, we continue to see a lot of sideways action more than anything else. And I don’t really think you have a scenario where you need to get overly aggressive one way or another. But with this being said, I think you have a situation where traders are probably going to be looking at this as a market that is more or less a range bound market that you are looking to trade sideways.

Wednesday features the Federal Reserve interest rate decision, and that will most certainly have a major influence on everything, including silver, as silver is highly sensitive to what happens in the interest rate markets. It’s worth noting that underneath we have the 200-day EMA as well as the $28.75 level offering support, and above we have the $31 level offering resistance. If we can get above the $31 level, the market could very well go looking at the $32.35 level.

And I do think that is a very real possibility, but right now, silver just seems sluggish. It looks to me like you’re better off with gold, and unfortunately, retail traders equate one with the other. They aren’t always the same market. They certainly aren’t now. So, it’s just more of a sideways grind here.

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