Silver markets rally during the week, bouncing from the $14 level. That’s an area that has been important more than once, so it’s not surprising that we have seen the market show a bit of buying pressure in that area. Friday was absolutely volatile, and I think that shows at the very least just how important this area is. However, by the end of the week we formed a green candle in that’s a good sign. Perhaps we could bounce towards the $15 level, which of course is a major round number and of its own right. The $14 level has been massive in the past, so I think it makes sense that we would bounce from here. However, longer-term traders are going to be better off buying physical silver more than anything else.
The alternate scenario of course is that we get a break down below the $14 level, especially on a daily close. If we have that happen, then the market probably goes looking towards an even longer term support level at the $12 level. This is all about the US dollar, and if it strengthens that continues to put bearish pressure on silver. I would also point out that the Gold markets have formed a couple of shooting stars in a row, so we are starting to get a bit of a divergence between these two markets, something that means there’s a lot of confusion out there.