Silver Midday Technical Analysis October 31

Silver markets fell to kick off the trading session on Wednesday, slamming into the $14.25 level before getting a little bit of a bounce. That’s a good sign, because quite frankly silver needs to pick itself up unless we are going to continue to crash towards the $14 level. I do like silver longer-term, but quite frankly we need the US dollar to calm down, something that I don’t see happening in the short term. In order for that to happen, the Europeans have to get their act together, something that doesn’t look very likely. As long as the Euro continues to fall, that drives up the value of the US dollar, and by extension can weigh upon the Silver markets in general.

SILVER Midday Video 31.10.18

Silver markets should find plenty of support at this area, but if we don’t I think that would probably be a US dollar strengthening type of situation. If we do bounce from here, I suspect that the $14.50 level will be massive resistance. If we can break above that level, then the market could go to the $14.70 level after that. At this point, I’m very cautious about Silver and certainly would keep a small position going. The CFD market might be the best way to play this market, or perhaps even options if you have that ability because of the extreme amounts of volatility that we have seen. However, a break down below the $14.20 level could get people piling into short the market down to the round figure out the $14 level.