Silver Forecast Today - 6/11: Silver Holds Firm (Chart)


(MENAFN- Daily Forex)

  • During my daily analysis of commodity markets, the silver market has caught my attention as we continue to see it bounce around the same area, especially near the $32.50 level.
  • The $32.50 level of course is an area that a lot of people will be paying close attention to, as it was a significant resistance previously.
  • All things being equal, this is an area that has been important multiple times now, so I think it is being paid close attention to as this of course will be a major area of influence.

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The technical analysis part of this equation suggests that see a lot of importance at this $32.50 level, but we also have the 50 Day EMA reaching the $31.75 level and is rising. All things being equal, this is a market that will continue to see value hunters, and it's worth probably noting that the market is likely to go looking to the $35 level. In general, this is a market that's been in an uptrend for quite some time, and the last couple of weeks have been of the negative kind, but I think this is more or less people taking profit ahead of a couple of major decisions.

If we were to break down below the 50 Day EMA, it opens up the possibility of a move to the $30 level. The $30 level would be massive support, due to the fact that it is a large, round, psychologically significant figure, and it's probably worth noting that the 200 Day EMA is racing toward that area.

Keep in mind that the Tuesday election of course is going to continue to cause noise, but we also have to worry about the Federal Reserve and what it may do or perhaps maybe what it won't do. All things being equal, the market is going to be paying close attention to not only the fact that the Federal Reserve is likely to cut 25 basis points, but the reality is that the press conference afterwards will probably be the most important bit.

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