Silver markets initially tried to rally during the trading session on Thursday, but then rolled over again to reach down towards the recent clustering that we had seen near the $15.60 level. If we can break down below the 50 day moving average, and then possibly even the $15.50 level, it’s likely that the Silver markets will unwind rather significantly. I would anticipate a move towards the $15.00 level, an area that has seen a lot of interest paid attention to it in the past.
SILVER Video 01.03.19
Alternately, if we can bounce relatively soon I think we will make a move towards the $16.00 level again. However, one thing that I cannot help but notice is that the rallies are becoming less impressive over the last couple of times, and that does suggest that perhaps we are running out of momentum or at least conviction to the upside. At this point, it is still far too early to make a decision on the longer move, but certainly it looks as if we are getting very close to making a larger decision. There is a lot of volatility ahead, and therefore I would be cautious about putting large positions into the silver market. Longer-term, I like the idea of owning silver, but that is in a physical sense, and not necessarily in a leveraged position. That is more of an investment than a trade. For anything else, being cautious and simply waiting to see what the next couple of days brings us is probably the best way to go.
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