Silver rallies a bit during Monday trading

Silver markets continue to be very noisy, as the $16.30 level continues to be support. Ultimately, it looks as if the $16.50 level offers resistance as well. If we can break above there, then the market should go towards the $17.00 level next. Keep in mind that sewer tends to move in negative correlation to the US Dollar Index, so pay attention to what that does. If the US Dollar Index falls, that typically is good for silver in general, as well as other precious metals. I will be watching it as an opportunity to gauge where the silver market will go. I think that ultimately, this is a “buy the dips” situation, and I will continue to approach precious metals as such. I would not use a lot of leverage though, because of the volatility. That is unless of course you have a futures account that is of reasonable size.

The CFD market looks a bit like a nice opportunity as well, as we can continue to go back and forth for the time being. I think that Silver will eventually try to break above the $17.50 level, and that could send it much higher. However, it’s going to take a while to do that and I think that the interim is going to be very volatile. I like the idea of playing small positions for the prevailing choppiness, but I do think that in the future we will see a lot of certainty into this market, and when it does it will almost certainly be to the upside.

SILVER Video 10.04.18