Silver markets initially tried to rally this week, but found the $17 level to be a bit too resistive. We turned around and broke through the $16.50 level on Friday, as the jobs number came out stronger than anticipated. As the market continues to grind lower, there are a couple of places it should offer a bit of support. The $16 level underneath should continue to be supportive, and if we can break down below there, the market could go as low as $15. I recognize that the Silver markets are going to struggle with a stronger than expected jobs number coming out on Friday as it brings the value of the US dollar to the upside.
Volatility
I believe that the volatility should continue to go higher, and therefore we should see a lot of erratic behavior. However, for me it looks as a silver is going to roll over a bit and I think that the next couple of dollars will probably be to the downside. Rallies are to be sold unless of course we break above the $17 level, which would change everything. If we rally above the $17 level, the market should continue to go towards the $18 level but quite frankly we would need to see the US dollar lose value for the Silver markets to continue climbing. At this point, that doesn’t look very likely so I am more bearish than bullish. Short-term trading is probably going to be easier that longer-term trading though.