Silver markets break out during positive Wednesday session

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.

SILVER Video 07.06.18