Silver markets continue to be very choppy, as we managed to bang around the $16.15 level. Ultimately, I believe that the market will continue to go to the upside, with the $16 level underneath being massively supportive. That is the short-term “floor” in the market, so I think that buyers will continue to jump into this market on the dips. Silver of course is a “risk asset”, while at the same time being a bit of a safety asset. Because of this, if we can get some type of situation where there’s a geopolitical problem, the Silver markets will continue to go higher. I think that pullbacks during the trading session had should be thought of as value, unless of course we break down below the $15.90 level. If we do, that point we go to the $15.50 level underneath.
In general, the market looks likely to continue to go higher, perhaps reaching the $18 level above. With this, I think it’s only a matter of time before value hunters come back into the marketplace, as the Silver markets have been beaten down rather significantly over the last several months, but Silver seems to have a hard floor in it just below, as the longer-term outlook for precious metals I believe is good, but obviously we will have volatility. This time a year does not help volume, as the majority retail traders will be out of the markets, just as institutional traders will be. The next couple of sessions could be rather than, so make sure you trade with small positions if you find yourself needing to get into the market.
SILVER Video 22.12.17
This article was originally posted on FX Empire