Silver markets initially tried to rally during the week, but then rolled over near the $16.75 level to form a negative candle. The market has plenty of support underneath, starting at the $16 level, and reaching down to the $15.50 level. I think that ultimately this support of level will continue to hold, so I think that if we drop from here, there should be buyers involved. I like buying dips, as we continue to see such reliable support in that area. If we did breakdown below the $15.50 level, I would become concerned, but that seems unlikely considering how reliable it’s been. I like buying the dips as I said, but I also recognize that if we break above the $16.75 level, extensively the top of the overall range for the week, then I think the market could go to the $17.50 level.
I like buying silver longer-term, and I think that the it’s only a matter of time before will take advantage of these lower prices again. I think that longer-term buy-and-hold traders will continue to pick up physical silver, as we have been in a trading range forever, signifying that there is a certain amount of confidence in this market. I think that if the US dollar roles over, it’s likely that the silver market should continue to go much higher, perhaps reaching towards the $20 level initially, and then eventually breaking above there to go as high as $50 longer term. I think it’s going to take a long time for that to happen though, so in the meantime short-term traders will continue to scalp this market.