Silver markets have rallied a bit during the trading session on Thursday, reaching towards the $15 level, an area that of course is crucial from a large, round, psychological significant level. At this point, I think that the market breaking above the $15 level sends the silver market up at least one dollar, based upon the size of the consolidation. Looking at this chart, I think we are in fact going to see a significant push towards $15, but I need to see a daily close above that level in order to put any real money to work. I think silver will continue to be very choppy as it typically is, and I recognize that we will probably continue to see a lot of back-and-forth. Pullbacks at this point will probably be supported by the 50 day EMA on the chart, which states just below pricing at $14.60.
SILVER Video 14.12.18
If we do break down below the 50 day EMA on a daily close, then I think we could see a rather significant move down towards the crucial $14 level, an area that I think is every bit as supportive as $15 is resistive. Ultimately, I do like the idea of buying dips, and I do think that longer-term we will see Silver rally, but I prefer to do so with little to no leverage as leverage Silver markets can be a very dangerous place to trade. Overall, I think that we are looking at a scenario where the buyers are trying to make this a bottom.