Silver markets pulled back only to rally on Wednesday

Silver markets pulled back a bit during the session on Wednesday, reaching down towards the $16.35 level to find buyers. The $16.60 level above is resistance, and I think that if we can break above that level, we are free to make another attempt at the $16.70 level, and then go to the $17 level. Market participants continue to be erratic, but it does look like we are trying to build up a large basing pattern on the chart, and therefore I think that it’s only a matter of time before we go much higher. I think short-term pullbacks continue to be value that people will take advantage of, and one of the biggest problems with Silver has been a strengthening greenback. If the greenback continues to show signs of strength, that does work against the value of silver, but it looks as if the buyers are trying to make a bit of a statement here.

I believe that this market will eventually break out, it just needs a catalyst, be it a breakdown in the dollar, or perhaps some type of political problem that has people looking for precious metals. Perhaps the deal being broken down between the United States and Iran might push money into the sector, but I do like silver over the longer term. I think that the longer-term attitude of this market continues to have people jumping in, adding slowly as we move forward. I like picking up value, but I wouldn’t do so in large amounts.

SILVER Video 10.05.18