Silver markets continue to be very volatile as per usual, but ultimately I think that the market is focusing more on the dollar than anything else. The dollar has broken out overall, and that continues to put a lot of downward pressure on Silver, but at the same time there are a lot of geopolitical concerns. Recently, we have seen a couple of mixed messages from FOMC members, causing a bit of Muddy Waters when it comes to the idea of where the precious metals markets will go.
By breaking above the $16.50 level and show signs of strength and it showed that we could go towards the previous highs. However we have pulled back since then, this is just the $16.50 level again that is starting to show minor support. I think that the market does continue to go higher in the short term, but I would be very cautious about putting too much in the way of money when it comes to this market, and I believe that overall this market is one that you should probably test with small increments, or perhaps even physical silver. If you are an altar short-term trader, you could have more of an upward proclivity and the futures markets, but I would not look for long-term moves through that vehicle. If we break down below the $16.40 level, then the market unwinds to the $16.25 level. Above, I see the $17 level as resistance.