Silver markets when sideways overall during the day on Friday, as we continue to see a bit of sideways action, and of course a lot of confusion. The interest rates in the United States continue to put a bit of bearish pressure on precious metals, and of course I think that the market will be paying attention to the treasury markets going forward, as interest rates rising has put a lot of selling pressure in both Silver and gold. I think that the market should pay attention to the weekly chart though, as we are at a major crossroads, or at least getting ready to cross a major inflection point. We have a major symmetrical triangle, and ultimately that will drive where we go next. If we break down below the $16 level, the market would go much lower, to the $15.50 level, and perhaps even lower than that. Ultimately, if we break above the $16.80 level, silver should go much higher as it would show a major move to the upside.
I think there’s a lot of volatility to say the least, so it’s likely that the marketplace will need to be approached with caution, and I would use small positions initially before adding on a move to the upside. If the market stays within this general vicinity, then you need to be playing a range bound market trading system, perhaps something with the stochastic oscillator.