Silver markets rallied significantly during the trading session on Wednesday, reaching towards the $17 level which of course will attract a lot of attention, as it is a large, round, psychologically significant number. I think that the sellers most certainly will show up at this area, but we are obviously in and uptrend. I think that the market picking up at short-term dips should continue to attract a lot of value hunting, and I think it’s only a matter of time before we break out to the upside, especially if we get some type of geopolitical shock or possibly even a “risk on” move.
In general, I believe that the market should offer plenty of opportunities, and I look at short-term dips as an opportunity to pick up physical silver. As far as short-term traders are concerned, you may wish for a little bit of a pullback in order to pick up some value, especially if you can trade the futures market. I think that being slow and steady with an upward bias is the way to go going forward. In general, I think that the market has a significant amount of support underneath at the $16.75 level, and I would expect buyers in value hunters come back in that area. If we do break above the $70.00 level, then I would anticipate that the $17.25 level would be the next significant target.