The Federal Reserve Meets Next Week. Is a Squeeze Coming in Silver Prices?

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Silver made a violent move last summer when it broke a six-year resistance level. Prices have consolidated since but now the bulls may be returning.

Notice how XAGUSD probed and held its 200-day moving average in late March and the first half of April. This was the first test of the 200-day SMA since May.

Second, prices have broken a short-term bearish trend line running along the peaks of February and late March. They’re now trying to break roughly $25.75 – $26.50, a consolidation zone from mid-March.

Third, Bollinger Bandwidth has turned up after falling near 7 percent. This has been a floor for the range of motion. That could help fuel a move if the price action starts to expand.

For more, please click here to view the related idea and chart analysis on TradingView.

Silver (XAGUSD), daily chart, with key patterns, courtesy of TradingView.
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