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  • Silver rallied nicely during the trading session here on Friday, as the 50-day EMA has offered a certain amount of technical support.
  • Furthermore, we have the $28.50 level underneath there offering support, so I think it all ties together quite nicely.
  • This is a market where the traders continue to look at each dip as a potential buying opportunity and therefore, I think you have to look at it through the prism of trying to find value.

If we do break above the $30 level then it allows silver to go much higher, perhaps as high as $32. That being said, keep in mind this is a very noisy and choppy and sluggish market.

Occasional Pullbacks Likely

So, we will get the occasional pullback that could cause some headaches. In this environment, I think you have to still look at the longer term trend, but you also have to recognize the fact that once you do buy silver, you don’t want to get bogged down in the position. When it comes time to take profit, you take profit. You don’t hang on for a longer term move just simply because it is so noisy at the moment that you could end up turning a winner into a loser very quickly if you are not cautious. All things being equal, I do think that we go higher and in fact, I think we probably go much higher based on what I’ve seen.

Silver Forecast Today 17/6: Finds Buyers on Drops (graph)

However, I also recognize that if we break down below that $28.50 level, it very well could send silver spiraling down to the $26 level, where I think the actual trend, itself is defined. This has been a very noisy couple of weeks, but it does show a certain amount of resiliency that you have to be cognizant of. With that, I am positive on silver, albeit not aggressively so, as this is a market that although it is very positive, the reality is that it is also a very dangerous one, so I tend to trade silver in much smaller positions and I do other commodities such as oil or gold.

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