Silver continues to bounce around on Friday

Silver markets rallied significantly during the day on Friday, reaching towards the vital $16.50 level, an area that has been very important more than once. We found significant resistance there, and that makes sense of course. I think that the market falling from there makes a lot of sense, but I also recognize that we could break above there again rather quickly, as it is a simple guidepost for consolidation in general. It looks as if we continue to see the market go back and forth about $0.15 from that level, and it looks as if we can have a bit of a range bound trading system put the work in this area.

On the weekly charts, currency look as if they are ready to strengthen against the US dollar, and that could help the silver market. Even if we do fall from here, it’s likely that the $16 level offer massive support. I’m not one who thinks that we are going to explode to the upside, but I am bullish longer-term. I think short-term pullbacks continue to offer buying opportunities to pick up little bits and pieces occasionally, going up a larger position to hang onto for the larger move someday. The $20 level above is going to end up being the target but is going to take a long time to get there, and I think at this point short-term back and forth futures trading or building up a physical position might be the best way to approach.

SILVER Video 04.06.18