Silver markets rallied significantly during the trading session on Thursday, reaching towards the vital $16.60 level. The market breaking above that level would be very bullish, but I think that we will probably see some type of short-term pullback before that happens. We have gotten a bit ahead of ourselves, so I think that the market probably needs to pullback to build up the necessary momentum. I think that the $16.50 level underneath is support, and of course the short-term uptrend line that you can see on the hourly chart. Because of this, I continue to like buying silver on short-term pullbacks, but recognize it is a short-term base type of marketplace.
Ultimately, I think that if you have the ability to trade short-term charts, pullbacks are opportunities that you can take advantage of. Otherwise, buying physical silver on dips to hang onto for investments is also a very fair way to play this market, as we have massive amounts of support underneath. The $16 level begins a massive support zone down to the $15.50 level underneath, which is a major support level for the market on longer-term charts, and I think that we will remain above there. If we were to break down below the $15.50 level, that would be very impressive by the sellers, albeit very unlikely to happen anytime soon. I continue to buy dips and take advantage of value in this market every time he gets offered.