To learn more click here
The silver markets had a slightly negative day on Wednesday, but bounced from the $32 handle in order to show signs of support at that level. In fact, this market looks like it's ready to start going higher yet again. This hammer shaped candle for the Wednesday session suggests that we could see more bullishness ahead.
We feel that the silver market is a "buy only" market at this point in time. In fact, the $30 level was the last vestiges of resistance that we were worried about previously to keep us out of the market. We see this market is rising over the course of the next several months, if not years.
Having said that, the silver market as well as the gold market has both enjoyed extreme strength over the last decade, and this should continue. After all, central banks around the world continue to print money like it's going out of style, and there is a race to the bottom in the current “currency war.”
As long as we are above the $30 level we see absolutely no reason to short this market. In fact, we would actually suggest that we would have to break down below the $25 level to be comfortable shorting. We know that there is going to be a pullback from time to time, but this should be an opportunity to continue to buy silver futures, the SLV ETF, as well as physical bullion. We firmly believe that the silver market is one that is going to continue to run higher for quite some time.
We do see the $35 level is an area that should offer quite a bit of resistance. However, we think that this will only be a temporary thing, and of course as we mentioned previously pullbacks are to be bonds in this market. You have to look at this market this way: on Wednesday, we did get a pullback in this market of 0.64%. Yet at the end of the day we manage to see strength. This is about as big of a pullback is we've had over the last couple of weeks. Clearly, all of the momentum is to the bullish side in this market.