Silver markets fell over 1% in early trading on Monday, reaching down towards the $16.75 level as the Americans came on board. However, I do see a lot of support just below, so I think it’s only a matter of time before the buyers get involved and continue to push this market to the upside. The $16.50 level underneath is a bit of a floor in the market, so I think it’s only a matter of time before the buyers get involved. One they do, I think it will be a nice buying opportunity, as we could continue the overall uptrend. When you look at the hourly chart, you can make an argument for an uptrend line that coincides with roughly $16.75, but I think there is a range down to the $16.50 level, meaning that there should be plenty of buying opportunities.
As usual, I would suggest that being cautious about jumping in with both feet is the best way to go, unless you are trying to go back and forth in the futures market for scalping. I think that a lot of money can be made in this market, if you use that strategy but I think there’s more to be made if you build up a larger position and continue to build a huge core position that will take a while to profit, but once it does I think this market will explode to the upside, perhaps finally taking out the $20 level above, but patience will certainly be needed.