The Silver markets pulled back during the trading session on Wednesday as we await announcements coming out of both London and Washington DC. I believe that the market will continue to be noisy over the next couple of days, as we hang about the $15.50 level. I think that the market has significant support all the way down to the $15 level, and I think that it’s only a matter time before the “smart money” gets involved. However, the next couple of trading sessions could be rather difficult to deal with. If we were to break down below the $15 level, the market could break down very significantly. I think longer-term value hunters continue to jump into this market, so don’t be surprised if we see a bit of a bounce.
The $15.65 level is short-term resistant, but I think once we break above there we probably go to the $16 level over the longer-term. I believe that the market is trying to find some type of value in these levels, but silver is an extraordinarily volatile future contract. Because of this, I would be more apt to trade the CFD markets, or perhaps buy silver in its physical form. Although I do think that silver will struggle a bit in the short run, I do anticipate that the buyers will eventually take over again.
