Silver markets gapped higher at the open on Tuesday, pulled back slightly, found buyers, and then rallied again. We smash into the $16.50 level, an area that has been important in the past. At this point, I believe Silver does go higher as the US dollar looks a bit vulnerable in general, but we may need to pull back to build up a bit of buying pressure. Once we can break above the $16.50 level the market can go higher, and will aim towards the $16.75 level, and then the $17 level after that. I think the $16 level underneath is supportive, but I think the $16.25 level between here and there is supportive as well. In other words, I think dips are buying opportunities in silver.
I’ve been buying physical silver for some time, and now I believe that since we are starting to see a bit of momentum, you can even start to dabble in the futures market. CFD traders of course will be attracted to this market as well, and I love those markets as it gives you the ability to play a position size that is much more appropriate. You can start out slowly, and once we get a breakout it’s time to start adding yet again. Adding repeatedly gives you an opportunity to build up a large position and take advantage of what has been a reasonably reliable consolidation area extending to the $18 level above. It is not until we break down below the $16 level that I would be worried about the uptrend
SILVER Video 27.12.17
This article was originally posted on FX Empire