Silver drifts lower during the trading session on Thursday

Silver markets broke down a bit during the trading session on Thursday, reaching towards the $16.20 level, which could extend down to the $16 level. I think that some type of bounce is likely, so if you are careful you could probably scale into the position. The market continues to be well contained, so I would anticipate that nothing is going to change. I believe that the market will probably go looking towards the $16.50 level, which is the next psychological barrier.

I believe that buying on pullbacks continues to be the way forward, and eventually we should not only reach towards the $16.50 level above, but a break above there should send this market towards the $16.75 level. The markets continue to be a short-term traders type of scenario. Because of this, I think that it sets up quite nicely for a futures account, if you have one. Otherwise, use the CFD markets as they offer the ability to trade various sizes in a market that should be very volatile, but has levels that are obvious.

Ultimately, I have been buying physical silver to invest, but if you have the ability for CFD trading, it gives you the ability to facilitate larger positions for scalping, and smaller positions for investing. I believe that Silver markets will benefit from a “risk on” move, or perhaps the US dollar falling after the jobs number coming out today. If the US dollar falls, typically that will make silver more expensive.

SILVER Video 06.04.18