Silver markets break top of hammered during the week

Silver markets have pulled back a bit during the week but turned around to show signs of strength and broke above the top of the hammer that formed during the previous week. That is a very bullish sign, and I think that we could rally towards the $17.50 level, or possibly the $18 level if we can pick up significant momentum. However, this isn’t going to be easy, and I think that this remains a market that you should eliminate as much leverage as possible, as there is so much in the way of choppiness and of course if you are a futures trader it can be very difficult. If we were to break down below the $16 level, I think that there is a “zone” of support down to the $15.50 level, which is essentially the bottom of the overall consolidation that we have been in since the end of 2016.

I believe that the top of the range is closer to the $18.50 level, and if we were to clear that then I think Silver could reach towards the $20 level above, which of course is going to be resistance. A break above there would send in a lot of money into the market, but I don’t think that’s going to happen anytime soon. I believe we continue to play the range that we have been in, and right now looks like the next couple of weeks could end up being bullish, at least for a couple of dollars.

SILVER Video 14.05.18