Silver markets pulled back to kick off the day on Wednesday, but it looks as if there are buyers willing to step in to this marketplace and perhaps go long. The $14.45 level above has been short term resistance, so it would make sense that we would attempt to get to that area. Silver markets continue to be very noisy, as there are a lot of moves around the world involving the US dollar. If the US dollar rallies, that should work against the value of silver, but if it falls apart it’s likely that silver markets will gain as a result. At this point, I suspect that it is only a matter of time before we get that bounce necessary, but if we did break down below I think there’s plenty of support to be found near the $14 level as well.
If we did manage to break above the $14.45 level, I think we then will go towards the $14.50 level after that, which is even more resistance. Once we break above that level, then we are free to go much higher. At this point, I think that the market would then become more of a longer-term “buy-and-hold” scenario. Overall, it’s likely that this market continues to be very noisy but I do like the idea of picking up value in this area, and a break down below the $14 level seems very unlikely. If it happens, it’s likely that we unwind drastically.