It will be interesting to see what Silver does over the next couple of days, because we are testing a significant resistance barrier in the form of the $15.60 level. If we can break above that level, then the market is probably free to go looking towards the $15.80 level after that. I think that the market is still very tough to hang onto for the upside, but short-term traders should be used to this. Overall, the market is at the top of the “support zone” that I have been watching on the weekly and monthly chart, as it has been so well supported. Quite frankly, if we were to break down below the $15 level it would be very difficult to push this market much lower.
I believe that the market is trying to build up a “base” in the market so that someday when we take off to the upside most of the physical silver traders will be lined up just above $15 to profit quite nicely. It’s hard to imagine a scenario in which Silver breaks down below there, but you never know. I think short-term dips at this point are probably buying opportunities for longer-term traders, while short-term traders will continue to be more of the back and forth variety with a bit of a downward bias. At this point, it comes down to your timeframe.