Silver markets chop around on Wednesday

Silver markets chop around during the day on Wednesday, showing signs of volatility yet again. This is likely going to be the scenario going forward, because the US dollar has been pushed around by the treasury markets, something that causes a lot of interest.
Silver daily chart, May 17, 2018
Silver Coins2

Silver markets went back and forth during the day on Wednesday, and I think that it could be a sign that we are starting to see a bit of stability after a massive selloff. The $16 level underneath is very supportive, as it has been important on longer-term charts. I believe that a break down below the $16 level allows this market to unwind to the $15.50 level. That is the bottom of the multi-year consolidation area, and therefore I think that the buyers will return in that area. However, in the short term I think we may not even get that low.

I think if we can break above the $16.35 level, we are likely to see this market go looking towards the $16.80 level again. Keep in mind that the US Dollar Index should be paid attention to, as the US dollar strength has been what we have paying the most attention to when it comes to precious metals lately. I think that as the US dollar rallies, that will continue to weigh upon both silver and gold. With this type of noise and makes sense that we would continue to see a lot of choppiness, so as I have been saying for some time, you are either an investor, willing to hang onto low leverage, or you are a short-term trader at best. There is no in between when it comes to the silver market, simply because it is so volatile as of late. Ultimately, I do think that we break to the upside, but the question is when…

SILVER Video 17.05.18

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