Silver markets have been back and forth during most of Thursdays trading session, and I believe at this point were trying to build up enough momentum to finally break above the $16.50 level again. This is an area that was previous resistance and support, so I think it’s going to take a bit of time to build up momentum to go higher. I think that the market should continue to be noisy, but if you are patient enough you should be able to start buying silver relatively soon. Pay attention to the US Dollar Index, because of it starts to fall, that should be good for silver.
The US dollar has rolled over a little bit during the day, so we could see buyers to jump back into silver soon. I think there’s a lot of noise above though, so as per usual, I suspect that it is best to trade silver with physical silver, or at least very little in the way of leverage. The $17 level above will continue to offer massive resistance, so a break above there would be very bullish indeed. If we break down from here, I think the $16 level is even more supportive, and ultimately it is likely that we will find plenty of buyers in that area, if we even get down there. I do like silver from the longer-term standpoint, and I believe that the selloff has presented a nice buying opportunity for longer-term investors.
