Silver markets initially tried to rally during the day on Tuesday, but found enough resistance just below the $16.50 level to turn around and fall significantly. This was in reaction to the over 6 million jobs available in the United States. Ultimately, this is a market that is highly influenced by the US dollar, and as it rallied that of course brought the market back down to the support region of $16.25. The $16.50 level above is massively resistive, and because of this if we broke out above there I think that it would be a very buying opportunity.
Volatility
I believe that there is going to be more than enough volatility in the markets to keep this market very difficult to deal with. The $16 level below is a bit of a “floor” in the market, and that being the case it’s likely that the market will be very volatile and choppy around between the $16.50 level above and the $16.00 level below. Ultimately, this is a market that continues to be very choppy and dangerous, as short-term traders continue to push the market around. Because of this, it’s probably best to wait for some type of impulsivity that we can take a hold of, and be patient enough to wait for. I am currently on the sidelines but will inform you as to what I do next.