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Christopher Lewis
Silver daily chart, September 05, 2018

So we have hit the $14 level, an area that has been important on longer-term charts. This is interesting, because we have seen a lot of buyers in this area on longer-term charts, and this could represent a significant bottom in the market. However, that’s not to say that we can break down below here, because certainly we can. This is why I still believe that selling rallies in leveraged instruments such as futures markets or CFDs will probably be the best way to trade this market. As far as investing is concerned, I continue to buy a few silver ounces every couple of weeks, because eventually silver will turn around and rally back towards the highs. However, in this current environment it’s difficult to imagine a situation where the US dollar loses major footing against emerging markets, and that’s part of what’s driving this lower.

Silver demand far outweighs silver supply, so the longer-term fundamentals favor the upside. However, keep in mind that one of the worst kept secrets in the silver futures pits is that J.P. Morgan has been squashing silver every time it tries to rally. In fact, one would have to think that if the position ever completely turned around on them, we have some type of financial crisis. At this point, it will eventually turn around, and J.P. Morgan will certainly find their way out of the position. When that happens, the longer-term investment part of your portfolio holding silver will kick in. In the meantime, look for selling opportunities for short-term moves.

SILVER Video 05.09.18

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