Silver markets have initially tried to rally during the day on Thursday but ran into trouble at the previous short-term uptrend line. We rolled over from there, broke below the $16.50 level, and now look like we are ready to continue to go a little bit lower. However, in this type of volatile situation it’s difficult to know where we are going to go over the next couple of hours, so I always recommend that Silver be traded in small positions, or perhaps even physical positions. If you are a futures trader, then obviously you can scout this market and I think there is a proclivity to fall from here. However, if we were to break above the $16.60 level that would be very bullish sign.
Silver sometimes can be thought of as an industrial metal, a precious metal, or simply a vehicle in which people use to find a safe haven. I think that the market will continue to be noisy in general, and I think that the US dollar strengthening due to the tariffs being slapped on other countries is more of a fear move than anything else. When there’s fear, Silver does get beaten up under most circumstances. I think the $16.30 level underneath should continue to be support, and perhaps a short-term target based upon this break down. If we did break above the $16.60 level, then we would probably rally towards the $16.75 level.