Silver markets rally past resistance on Thursday

Silver markets broke above the vital $16.60 level, continuing to see buying pressure that has been part of the market for several days. This concluded a basing pattern that tells me the market is ready to go to higher levels, and I anticipate that we will be looking at $17 before we know it. Because of this, I like buying dips I think that the region between $16.50 and $16.60 should offer a bit of the support barrier. I think that ultimately we will see people jumping into this market down to the $16.50 level, and although we have been beaten up as of late in the precious metals markets, I think that the market will continue to favor buyers if you are patient enough. Again, I would highly recommend using very little in the way of leverage, or at least using small CFD positions as the futures markets could be a bit difficult to trade, unless of course you are a very short-term trader.

A breakdown below the $16.06 level could send this market looking towards the $16.30 level and would put the recent uptrend in jeopardy. However, after the impulsive move during the day on Thursday, I think we can conclude that there is a strong amount of support underneath that will continue to push this market higher over the longer term. Ultimately, I believe that Silver does breakout over the $17 level and continues to go much higher, but that’s a long-term call.

SILVER Video 11.05.18