Silver markets continue to be very negative looking, as we have rolled over during the day on Friday, and now it looks as if we will continue to see a lot of support at the $14 level as it is a longer-term region that has acted more than once as major support and resistance. I think that if we can break down below the $14 level, then the market will unwind to the $12 level. All things being equal, I think it’s easier to sell silver on short-term charts that it is to do anything else. However, if we can break above the $14.40 level, then I think the market could turnaround for a while. I have been buying physical silver as you know, but that keeps the leverage out of the equation, and therefore makes it much more palatable to own.

Longer-term, I do think that silver gets a bit of a business, but in the meantime it’s obvious that short-term selling is the only thing that’s been working on a relatively reliable basis. I think at this point it’s likely that the market will find one reason or another to stay above that crucial level, but if it doesn’t I would become aggressively short of this market. In fact, at that point I would probably even be short the futures market, something that is very dangerous to do with the sizing of the contracts.

SILVER Video 17.09.18

This article was originally posted on FX Empire

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