Silver initially plunged on Monday to kick off the week but found plenty of support near the $80 level yet again.
Silver
Silver initially plunged during the trading session on Monday, dropping all the way down to the $80 level, a level that's been important multiple times in the past and therefore I think it is not a huge surprise that we have seen a significant amount of buying pressure and the fact that we are bouncing back from the 200-day EMA of course is something to pay close attention to.
While I don't necessarily think this means that silver is going to take off, what I do think is that it shows a very serious amount of support underneath and that there are still plenty of buyers out there willing to get involved and try to lift silver.
The $90 level is targeted, and anything above there opens up the possibility of the $95 level. A breakdown below the $80 level opens up the possibility of a drop to the $70 level, a large round psychologically significant figure and an area that has been massive support previously.
A Buy on the Dip Market
All things being equal, I think this remains more or less a buy on the dip type of market, but I also recognize that we are in a situation where there's a lot of distraction out there, there's a lot of noise and therefore I think you have to be very cautious with your position size.
Overall, I think I'm bullish about silver, but silver's not the first place I'd be looking to buy, it would actually be more interesting to me to buy gold. So, with all of this, I remain cautiously optimistic, but I also recognize that silver is one of the more dangerous places to be.