Silver markets initially gapped lower, but then rallied enough to reach towards the $17 level. We felt from there again, but now as I record this, we are starting to see buyers come back into the market. It’s not until we break above the $7.15 level that uncomfortable buying, because quite frankly we have seen a lot of noise as of late. We have also formed a lower low, and that means that we should continue to see massive amounts of volatility as we are getting conflicting signals. The US dollar has been strengthening overall, so it seems likely that the markets will continue to see sellers. The market continues to be noisy, but overall, I think that Silver will probably underperform gold markets. I think that we probably will go looking towards the $16.50 level unless of course we do get to break out to the upside, which seems like it’s possible, but it is going to be difficult.
Expect a lot of noise, Silver markets aren’t exactly liquid at times, and that can cause massive swings and pricing. I think that the $17 level continues to be “fair value” in a market that is bouncing around overall between the $16.50 level on the bottom, and the $17.50 level on the top. The market will continue to be very noisy, but I think it is attracted to the $17 level, so unless things change, it’s likely that every time we get a little too far from the $17 level, the market will try to reach towards that level. The market being noisy is nothing new, so taking small positions will probably continue to be the best way to protect yourself in this very difficult and challenging market as interest rate expectations continue to be noisy in general.
SILVER Video 24.10.17
This article was originally posted on FX Empire