Silver markets initially try to rally during the trading session on Monday but found the $16.90 level to be far too resistive to continue going higher. We pulled back from there but found plenty of support near the $16.75 level to turn around and rally towards the highs again. Now that we are breaking above there, it’s very likely that we are going to go to the $17 level above. If we can clear that level, then I think the market should continue to go towards the $17.25 level above.
I think that every time we pull back, there will be buyers looking at picking up a bit of value, and that this market is extraordinarily volatile as per usual, so I think at this point you should probably look at pullbacks as an opportunity to pick up a little bit of silver, perhaps either in a small position, or perhaps even physical like I do for longer-term investment trade. I believe that eventually sober will continue to reach towards the $20 level, and beyond there.
At this point, I believe that the $16.50 level underneath is the “floor” in the market, and I think that it should continue to lift this market in general. I think that overall attitude of global leaders continues to be a major driver of this market, but beyond that I also think that there is enough uncertainty in general to make silver a bit more attractive than usual. I would not be highly leveraged though, because things could change at the drop of a hat.