Silver markets pulled back a bit during the trading session on Tuesday, reaching towards the $15.20 level. The 61.8% Fibonacci retracement level is in that area as well, and as a result we have bounced a bit. I think there is massive support underneath extending all the way to at least the $15.00 level, so I think that it’s only a matter of time before we turn around and rally. If we were to break down below the $15.00 level, then that could change the tone of this market, and what have the market looking for support at even lower levels. I do believe that the silver market should continue to go higher longer term though, because quite frankly we have a Federal Reserve that’s looking likely to sit on the sidelines, and that should weigh upon the US dollar longer-term. If that’s the case, then silver and other precious metals should get a bit of a boost.
SILVER Video 23.01.19
At this point, I think we will go looking towards the $16.00 level above, and therefore I think you could get a move that last several days if not weeks. A break above the $16 level allows the market to look towards the $17 level above, which is a much more significant amount of resistance on longer-term charts. Based upon fundamentals, I have no interest in shorting Silver although I recognize that we could drop a bit from here. Ultimately, I would start small and then build up as the market proves my trade correct.