Silver markets rally on Thursday in divergence from gold

Silver markets rally during the day on Thursday, while the gold markets had fallen. Ultimately, this is a bit odd, but silver seems to be trying to lead the way as gold has recovered some of the losses during the day. · FX Empire

Christopher Lewis

Updated Thu, May 17, 2018, 11:01 PM

Silver markets went back and forth during the trading session initially on Thursday, but then rallied to reach towards the $16.50 level. I think there is a significant amount of resistance between the $16.50 level in the $16.60 level, so it’s likely that the market will struggle to get above there, but if we do breakout above there, it’s likely that we will continue to go much higher. Short-term pullbacks should be buying opportunities, as there is plenty of support underneath that extends down to at least the $16 level. Quite frankly, I have no interest in shorting this market and I think that it’s only a matter of time before value hunters come back into this market. However, I think that the markets will continue to be volatile, so therefore you need to keep your leverage very low. Longer-term, I think that the market should go to the $17.50 level, and that eventually the $20 level after that.

$16 underneath is massive support, and it extends down to the $15.50 level. The $15.50 level underneath is massive support, based upon the longer-term charts. I think that the market will continue to find reasons to go higher on pullbacks, and I believe that if you build up your position slowly, you will eventually get some type of profitable longer-term holding. I like this market for investments, but trading is a bit different as it is very erratic. However, I continue to look at pullbacks as an opportunity to pick up silver “on the cheap.”