Silver markets show extreme weakness against firm dollar

Silver markets went back and forth during the trading session on Friday, initially trying to rally towards the $16.70 level before breaking down significantly. By doing so, we reach towards the $16.50 level, which is a major support barrier from what I can tell, so I think that value hunters may return to this market. I believe that it’s only a matter of time before we reach towards higher levels, with the major geopolitical concerns out there. Granted, the US dollar has been strengthening, but quite frankly I think that is only one of the major components. Typically, the US dollar will rally well precious metals will fall, but there’s also the reality that we could see both markets rally, as they have in the past.

I believe that the market should then go to the $70 level above, which is a target, and I think breaking above there is a very real threat as well. If we break down below the $16.50 level, then the market could go down to the $16.35 level after that. We have been making “higher lows” recently, so that of course is a very bullish sign. I think that it’s only a matter of time before buyers command picking up value. Ultimately, this is a market that is very volatile and choppy, so I always advocate using small positions when it comes to silver, or at least playing the physical metal as over leveraging your position can be very dangerous in this type of trading environment.

SILVER Video 28.05.18