The silver markets have been a difficult place to be involved in over the last several weeks. After all, all you have to do is look at the chart and recognize the fact that we have been stuck in a fairly tight range for roughly 6 months. With that, there is an opportunity in this market though, and I have been taking full advantage of it. I have been buying physical silver, every time it gets close to the $19 handle. As you can see on the chart, $19 has in fact offered quite a bit of support.
Looking at this chart, you can see that there’s a little bit of a trend line that has been broken above in the last couple of months, and we are now testing that trend line again. With that, I believe that the market is going to find a significant amount of support in this region, and the fact that the weekly candle at the end of the month of April formed a hammer doesn’t exactly hurt the case either.
Short-term trading opportunities could lead to larger ones.
While it looks like this market may be relegated to offer a short-term trades between the $19 level on the bottom, and the $22 level on the top, I believe that there is a significant amount of support below that could pushes market higher. When you look at the MACD, you see that the momentum has been rising and as a result it appears that more than likely continue to see buying pressure and eventually a move higher.
With my physical silver, I truly am going to wait until we reach the $24 level, and decide what to do there. With futures positions, the trader could take smaller chunks out of the market, recognizing that it might be a bit of a fight to get above the $22 handle. However, I think that those of you who have the ability to trade CFD’s, or options or example, maybe better off buying and holding silver in this general vicinity.
