Silver markets initially went sideways during the thin trading on Friday, but it is obvious that we are trying to break above the $17 handle. If we can clear that level, I think the next target will be $17.25, followed very quickly by $17.50 after that. Short-term pullbacks continue to be buying opportunities, as the Silver markets have been rather strong, with the 24-hour exponential moving average offering nice dynamic support. As I record this, it looks as if we are trying to break through the resistance above, and we may have just run several stop levels. Now that has happened, it will be easier to go to the upside.

Alternately, if we pull back from here I would anticipate that the $16.75 level should offer plenty of support, and could be an area the start buying from as well, as it is an area that has been resistive and coincides nicely with the moving average that I have been following. Either way, selling silver is almost impossible at this point, and I am comfortable using a leverage position, something that I don’t do lightly with silver, as it tends to be very volatile. Ultimately, this is a market that should perform quite well for the new year, and I think at this point, we are probably looking for a move towards the $18 level over the longer term, as the US dollar has been very soft lately, not only in this market, but in most currency markets as well. For what it’s worth, gold has already broken out above a major resistance barrier, and typically Silver will follow.

SILVER Video 02.01.18

This article was originally posted on FX Empire

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