Silver markets have gone back and forth during the trading session on Wednesday as we await the Federal Reserve decision and of course the press conference. Silver looks as if it has a massive amount of resistance near the $20 level, so there is no need to press the issue here. However, if we get a daily close above the $28 level, it would be very bullish. If we pull back from here, then I believe that we will continue to bounce around in the same consolidation area. The $26 level underneath should continue to be very supportive, as we have seen over the last several weeks. Ultimately, the 50 day EMA is crossing the $25 level now as well, so that is yet another reason to think that the buyers may return.
SILVER Video 17.09.20
However, the US dollar is showing signs of resiliency, and if it does continue to do that it is very likely that over markets will pay the price. Because of this, I would anticipate that we could go back and forth in the same area, creating a choppy condition. However, if we break above the $20 level, then we will start looking towards the $29 level, the $30 level, and the next leg higher. This will come down to help the daily candlestick closes, and of course the way the market digests the press conference after the meeting. Quite frankly, we are in an uptrend but that does not mean we cannot pullback or see a huge change after the Federal Reserve meeting. For now, the market is simply bouncing around between $28 on the top and $26 on the bottom.
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