Silver markets rallied at the open on Monday, reaching towards the $17 level. However, that area has caused a bit of resistance and it’s not a huge surprise to see that it has pulled back. I think we are going to need to build up momentum to finally break out, but once we do clear the $17 level, I feel it’s reasonably safe to assume that the market will go looking towards the $17.25 level, and then possibly the $17.50 level. I think pullbacks should be buying opportunities, and there should be plenty of support near the $16.75 region. Silver does tend to be rather choppy and difficult at times, so taking out some of the leverage might be the best way to trade this market. Using physical silver is one solution, or if you can trade binary options, that could work as well.
Personally, I prefer the CFD markets, as they give you the ability to adjust your position size. This allows for traders to build up a position sizes as we gain, as I think that eventually Silver will probably go looking for higher levels, especially considering that the geopolitical concerns are still very high around the world. There of course is the noise coming from the North Korean situation, but there is also a lot of trouble waiting out there in places such as Turkey and Spain. Because of this, I think that people are going to prefer precious metals and the short-term, but keep in mind that these pairs do tend to be very erratic, and can turn right back around in the blink of an eye. A break above the $17 level would be the next area that I would be willing to buy. As far as selling is concerned, the market would have to break down below the $16.50 handle.
SILVER Video 10.10.17
This article was originally posted on FX Empire