Silver markets rally significantly into resistance on Wednesday

Silver markets exploded to the upside during the day on Wednesday, as the US dollar got hammered. However, the $16.50 level above has offered resistance, and of course the uptrend line that had previously been supportive, so I expect to see sellers get involved. As I record this market, I see that we have formed a shooting star on the hourly chart. I think that if we can break down below the bottom of this candle, the market should continue to go lower, perhaps reaching down to the $16.35 level, perhaps even lower than that.

I think that the market will continue to go lower in the short term, but if we break above the $16.60 level, the market should continue to go higher, perhaps reaching towards the $17 level. I look at short-term pullbacks as buying opportunities for the longer-term though, as the silver market has been very noisy and choppy to say the least. I think that if you add slowly and perhaps keep the leverage to a minimum, you can build up an investment. I think that longer-term, the Silver markets will certainly rally significantly, perhaps reaching as high as $20 over the next several months. However, in the short term it will continue to be very noisy as we have so much in the way of volatility when it comes to the currency markets. Expect noise but look for value that you can take advantage of as it comes. Use small positions to keep your risk low. I believe that the $16 level underneath is a hard “floor” in the market.

SILVER Video 31.05.18