The Silver market has been very choppy during the trading session on Monday, using the $60.50 level as support. The level of course is important from a psychological standpoint, but also from a structural standpoint as you can see that the rectangle drawn on the chart shows that there is a lot of order flow in this general vicinity. It is because of this that I think that the Silver markets will be able to rally if we don’t get some type of major trade war escalation, or the US dollar escalating in value. I think that if we can break above the $16.61 level, the market will probably continue to try to recover those losses. We could go as high as $17.25 after that. However, it’s not can it be an easy trade.
If we break down below the $16.30 level, that will more than likely send the market down to the $16 level next, perhaps even lower. However, there is so much in the way of support below that I think that the downside is somewhat limited in general. I believe in the longer-term viability of a silver rally, and I have been buying physical silver for quite some time. In reality, I think of this more as an investment than anything else and I do anticipate that we will eventually go looking towards the $20 level, but we need some type of catalyst, something that we are sorely missing right now.