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Silver markets break down significantly during the Tuesday session at the US dollar strengthen overall, and wreaked havoc in the financial markets. I think that the market then started selling off anything that was valued in US dollars, as the currency headwinds caused a lot of issues. I like the idea of buying silver “on the cheap”, but I also recognize that leverage is going to be a killer in this market. I believe that ultimately we will see a lot of pressure to the upside, but this is an investment, not a market that you can trade rapidly a lot of times.
I believe that the market will ultimately find support near the $16 level, but if we don’t, then I think the longer-term support at $15.50 comes into play. At that point, we were to break down that could be catastrophic. I do believe that value hunters will look at this as an opportunity, but I also recognize that you are probably better off either buying physical silver as I do, or perhaps trading the CFD market as it is flexible enough to give you the ability to trade micro positions, and then add as it goes in your favor. If we do rally, after adding I would be very quick to move stops to mitigate any losses, as we continue to see a lot of choppiness in general. Longer-term, I think silver finds its way towards the $20 level, but this could take quite some time. In the short term, I anticipate being patient and waiting for stability is the way to go.
SILVER Video 16.05.18
This article was originally posted on FX Empire