Silver markets went sideways overall, showing signs of volatility and choppiness as Silver of course is thin when it comes to commodities markets. As we have drifted lower, it starts to get close to major support underneath that gives us an opportunity to pick up value. I believe that based upon longer-term charts, the $15.50 level offers a bit of a “floor”, but quite frankly I’d be surprised if we get down that low. I think it’s only a matter of time before we get some type of bounce, which is a buying opportunity and also a sign of the resiliency of this market. I believe that longer-term traders are starting to buy silver in bits and pieces, perhaps building up a larger core position that we can take advantage of. In the meantime, I think that this market is likely to continue to see volatility.
It’s because of this that I like trading the CFD markets, as it gives us the ability to build up a position extraordinarily slowly, as the market has shown itself to be a “buy on the dip” situation for some time. If we did breakdown below the $15.50 level, that would be extraordinarily negative and could unwind to the $14.00 level. However, I think that market participants are very unlikely to have that type of attitude. The US dollar strengthening has been a bit of a burden on silver, so watch interest rates.