Silver markets went sideways initially during the trading session on Thursday, reaching down towards the $16.40 level. That area has offered enough support to cause market to bounce rather significantly, as the US dollar has fallen. I believe that the Silver markets are trying to find enough support to rally again, and I believe that the market is probably one that you can buy on dips. That could be wrong, this is a market that will have a lot of trouble, but longer-term I believe that the buyers will certainly come out on top.
Pay attention to the US Dollar, if it starts to fall that is a natural lip for the Silver markets, and by proxy the entire precious metals region. The $17 level above is resistance as well, so I think that if we were to break above there, the market would pick up momentum and continue to go towards the $17.25 level. The alternate scenario of course is that the market breaks down below the $16.30 level, and then goes looking towards the $16 level where I’d be even more interest in buying, as it is a major support level on longer-term charts. I believe in buying silver, I don’t like over leveraging this market though, because it does tend to be rather volatile. That’s the biggest problem most retail traders face though, because it takes a certain amount of patience to trade this market, as profits could come slowly unless of course you do over lever, which is a very dangerous thing to do in this market place. I think that the Silver markets continue to offer more of a longer-term scenario.