- Silver extends its strong upward move, breaking above $60 as traders anticipate the Federal Reserve’s upcoming rate decision and press conference.
- Momentum remains firmly bullish, dips are favored for buying, and shorting is considered highly risky.
Silver continues to expand to the upside, and in the last couple of hours, we've seen a break above the $60 level. It'll be interesting to see how this plays out, but clearly it looks like silver is trying to front-run the Federal Reserve interest rate decision and perhaps even press conference. The press conference will be important because it'll give us an idea as to what the Federal Reserve does with interest rate decisions going forward.
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But as things stand right now, I think the one thing that you cannot do in either precious metals market, especially silver, is short the market. With the silver market behaving the way it is, I think you have to look at this as a scenario where traders are just looking at every little dip as a buying opportunity.
Bullish Technical Structures Forming
The consolidation that we have seen has turned this basically into a bullish flag or maybe a bullish pennant, depending on how you look at it. And now we could see the market go all the way to the $69 level. And that would be a longer-term target. And we don't really have a timeframe on that, mainly due to the fact that later this year, we will have very little volume as we are getting close to the new year.
If we do pull back from here, I like the idea of buying near $57.50 and $55 if I get that opportunity. Regardless, the one thing that I do not want to do, as I said, is short this market. I think it's got much further to go by the way it's behaving. Silver is a dangerous market to trade in sometimes. And you do have to pay close attention to your position in science, but clearly, we have a huge push to the upside.
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