Silver markets broke out to the upside, breaking above the top of the short term consolidation area that we have been in for a while, and now we have formed a bit of a “W pattern”, and that of course is a very bullish sign. I think at this point, we are likely to go towards the $17 level above, which of course is a large, round, psychologically significant number. I think that short-term pullbacks can find buyers near the $16.50 level, and I think that the market should continue to be very noisy, as is typical of silver. However, I don’t know that we could go much higher, as we have seen so much in the way of resistance. I think that short-term pullbacks continue to offer value, and I continue to build a larger position for the longer-term move.
The $20 level above will be a massive resistance barrier to overcome, and I think that there will be several attempts to reach that level, and I think short-term pullbacks continue to be where we can buy silver “on the cheap.” I think that building up a larger position for a retirement investment is a wise choice, but if you are short-term trader I think at this point you need to start looking at the possibility that we are a bit overbought, and perhaps a pullback is imminent. This is why I have a Bollinger Band indicator drawn on this chart, as it shows that we are overbought to say the least.