- Silver has been very noisy during early hours on Wednesday, as we continue to see a lot of volatility. However, the overall attitude at this point in time remains bullish as per usual.
SILVER
Silver was very noisy during early hours on Wednesday, jumping quite significantly at the opening and just sitting there. I think a lot of what's going on here is people are waiting to see what happens with the FOMC interest rate decision, which is no decision, but there's a statement and press conference that a lot of people will be watching, looking for hints along the way as to what the Fed will do.
With that being the case, I think we are looking at a market that could be very dangerous over the next couple of days as we are so overbought. If we do pull back from here, the $110 level is an area that I think a lot of people watch. If we break down below there, then the $100 level becomes very interesting because it has a lot of support from a psychological standpoint and I suspect from an options standpoint as well.
Upside Targets and Technical Support
To the upside, we have the $120 level offering a target and quite frankly, this is a market that's overbought, it's very difficult to chase all the way up here. Ultimately, this is a market that I'm hoping to see a 10% or 20% pullback in order to get involved, but we may just see a little bit of volatility around the press conference.
If it starts selling off, I start looking for a bounce to take advantage of any turnaround in the upward momentum. As always, it's very important to be cautious with silver because of the leverage involved so keep your position size reasonable.
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