Silver shows signs of strength on Monday before pulling back

Silver markets continue to be very choppy, reaching towards the $16.50 level before pulling back a bit. I think that the market could go as high as the $16.70 level above, which has a massive amount of resistance. I think that we will continue to dance around the $16.50 level in general, with the $16.30 level underneath offering support. I think that the volatility will continue to be a mainstay of this market, so small positions are probably about the only thing that you can take. I would be very cautious about putting too much money into this market, but the market is eventually going to need to make some type of decision. In the short term, it looks as if Silver is a market that you can only scalp, unless of course you are a longer-term investment minded trader like myself in Silver, buying physical silver to hold on to for a retirement account.

I believe that there is a massive amount of support below at the $16 level, and I would be surprised if we break down below there. If we do, the market will break down rather significantly. Ultimately, I think that we will find buyers but it’s going to be difficult to grind higher, so therefore I would not have a lot of leverage in this market. Overall, I think that the market could go to the $17 level, and a break above the $70.50 level opens the door to much higher pricing. However, it’s going to take a lot of momentum building to do so.

SILVER Video 05.06.18