Silver continues to be very noisy, as we have fallen a bit during the trading session on Thursday, breaking down towards the $15.75 level. At this point, I think that markets should continue to find plenty of resistance above there at the $16 level as well. Today is the jobs number, so that’ll have a significant amount of influence on the US dollar, which by extension can have a massive inverse influence on this market pair the US dollar rising in value will be negative for Silver, while the exact opposite is true. In general, I believe that we will eventually go looking towards the $15 level, so at this point I am more apt to sell rallies that show signs of exhaustion than anything else. However, I recognize that if the US dollar sells off during the day we could get a short-term buying opportunity we can get above the $16 level.
It’s not until we break above the $16.50 level that I would be comfortable buying this market for any length of time, as we should see a significant volume a move like that. If that’s the case, my target would be $17.50 level after that. Longer-term, I do like silver, but I have been buying it in physical form, building up a large position for my longer-term trading needs. I suspect that the $15 level will act as a bit of a “floor” in the market, and at that point I might advocate levering up a position, but right now we just don’t have it. A breakdown below the $15 level would be catastrophic.
SILVER Video 08.12.17
This article was originally posted on FX Empire