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Christopher Lewis
Silver daily chart, September 18, 2018

Silver markets rallied significantly during the trading session on Monday, as we continue to see a lot of volatility but within an obvious trade range from what I see. The $14.35 level looks to be resistive, while the $14.10 level underneath seems to be supportive. Ultimately, I think that this market will continue to bounce around back and forth, but I am much more comfortable shorting Silver than buying it. My play lately has been selling the silver market when the US dollar rallies and buying gold when it falls.

This is simply because Silver continues to underperform. I think that as the two markets tend to move in the same direction overall. It allows for a certain amount of symmetry in your decisions. It’s not that I wouldn’t buy silver at Lowe’s, it’s just that it gold should continue to outperform and therefore there’s no reason to be involved in that market under those circumstances. However, if the US dollar strengthens, immediately look to the silver charts for an opportunity to sell. I suspect that we will see an opportunity to sell relatively soon, especially near the $14.35 level.

The $14 level underneath is massive support on longer-term charts, and if we were to break down below there, I think that the Silver markets will unwind quite drastically. I think that the $14 level will be defended rather stringently though, so it’s going take a lot to get below there. Overall, anticipate more range bound trading, but I much more comfortable going short.

SILVER Video 18.09.18

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