In This Article:
Silver markets initially fell during trading on Friday but found enough support underneath to turn things around and form a hammer. The hammer is of course a very bullish sign, but I think that there is significant resistance near the $16.75 level as well. Because of this, I would not expect too much but I do prefer the upside more than anything else, especially if the US dollar starts to fall. Looking at the setup right now, I anticipate that going back and forth on short-term charts might be the best way to trade this market.
Going back and forth is probably going to be the best thing to expect in this market, and trading small positions probably works best as it protects your bottom line. However, if you’re a futures trader this is an excellent opportunity as we have seen so much in the way of support at the $16.25 level, as well as resistance at the previously mentioned $16.75 level. This is one of the situations where you trade the range until it fails, which by default should be more wins than losses. Longer-term, I still believe in buying silver, but I also recognize that it is highly volatile, so caution would be needed for longer-term traders, and a lack of leverage might help in that scenario. Because of this, I have been buying physical silver and hoarding it for a longer-term situation, and my retirement account. The volatility should continue, because quite frankly there are a lot of moving pieces when it comes to the global economy.
SILVER Video 09.04.18
This article was originally posted on FX Empire