Silver markets continue to struggle to break resistance on Monday

Silver markets pulled back a bit during the trading session on Monday, reaching down towards the $16.40 level. The $16.50 level is an area that is important, as it has been both support and resistance in the past. Pay attention to the US dollar, because it has a major influence on where precious metals go. Recently, we have seen a lot of US dollar strength, so that has been very difficult on silver and gold buyers. I think if we can break above the $16.60 level, the market then goes to the $16.70, and then to the $17 level after that. I think that short-term pullbacks continue to be buying opportunities over the longer term, but the $16 level underneath is massive support.

If you keep your leverage low, I think there are plenty of short-term buying opportunities that will present themselves. By over leveraging the situation, you can get hurt rather quickly. Silver markets are notoriously volatile, but you should be cautious about taking too much money into the market. I think that if we can break above the $17 level, that would be an extraordinarily strong sign, but we will need to see some dollar weakness to facilitate that move in my estimation. I believe we will continue to see short-term pullbacks as an opportunity to take advantage of value, but I think this is more of an investment and less of a short-term trading opportunity. If you are a futures trader, take profits rather quickly.

SILVER Video 08.05.18