Silver markets rally during the week

Silver markets broke to the upside during the week, breaking above the small range we had been in for the last couple of months. Beyond that though, we are still in a larger consolidation which I have marked by the $15.50 level underneath, and the $18.50 level above. Ultimately, I think that the market will try to break above the $18.50 level, but it is going to take something rather special to send this market out of this region. If we can break above the $18.50 level, then we could probably go to the $20 level. Ultimately, we could get a pullback, but I think that the $16 level is the beginning of significant support down to the previously mentioned $15.50 level, so I look at pullbacks as buying opportunities.

I do believe that the silver market is trying to build up a larger base for a longer-term move, but it is struggling to find the momentum. Short-term traders will continue to be attracted to this market, and I believe that going back and forth with some type of stochastic oscillator type system might be the best way to go. For longer-term traders, they are better off building a larger position with low leverage to eventually take advantage of a massive breakout to the upside, which not only goes to the $20 level, but I believe much higher than that. However, this should be thought of more as an investment than anything else. If we were to break down below the $15.50 level, it could be rather negative for silver longer term. However, I suspect that isn’t happening anytime soon.

SILVER Video 23.04.18