Silver markets broke down a bit during the day on Tuesday, slicing through an uptrend line on the hourly chart. Regardless, I do think that eventually you could buy this market again, because I believe that the Silver markets will continue to benefit from a lot of geopolitical noise and of course concerned. While the rising US dollar has a bit of a negative effect on Silver, it still remains rather resilient, with a bit of a “floor” at the $16 level. I believe that these dips should continue to offer buying opportunities, and longer-term investors continue to put this market to work, perhaps billing up physical silver supplies and investments for longer-term people to get involved.
I think ultimately, the market is one that you can buy at short-term pullbacks in a leveraged market, but I do prefer physical silver as the markets do tend to be rather drastic and momentum driven. I think that CFD markets could continue to be a great way to play this market as well, but if you have the large account needed to trade Silver markets in the future markets, then you may find short-term scalping opportunities. For myself, I have simply been buying physical silver every time we pull back so that we can hold onto the trade and go towards the $17 level, perhaps even higher than that to reach towards the $20 level longer-term. A break down below the $16 level starts a massive support zone that extends down to the $15.50 level.