- Silver has shown itself to be a little bit sideways at the moment after shooting straight up in the air for a couple of sessions previously, all things being equal.
- This is a market that I think has a little bit of froth to work out. And with this being the case, I think you also have to recognize that we are still very bullish regardless.
- And in this environment, I just don't see why you would look for a short. In fact, really what I'm looking at here is a market that is likely to be a buy on the dip type of scenario in the silver market, as it has seen that multiple times over the last several months.
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The $42 level has been important multiple times as resistance and now I would assume has to end up being significant support based on market memory. As long as we stay above the $42 level, then I look at bounces as a nice potential opportunity to get long this market. If we break to the upside, keep in mind that the $45 level has a little bit in the way of psychological importance, but really at this point, I'm not necessarily looking to get very big.
I want to see at the very least this market go a bit sideways and then perhaps go to the upside. I really prefer a pullback that I can take advantage of for cheap silver. But with this being the case, keep in mind that the measured move of the bullish flag that previously printed did suggest $46. I don’t see how we don't get there eventually. Again, though, I'd prefer to buy silver on the cheap if I get the opportunity, as I believe we still have some distance to go to the upside.
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