Silver falls during trading on Tuesday
Silver markets initially went sideways during trading on Tuesday, as we hovered around the $16.50 level. However, we ended up breaking down below there and reaching towards the $16.35 level, which begins another minor support area. I believe that the market will continue to be very volatile, but that’s nothing new for people who are used to trading silver. I think that the overall risk appetite in the market will continue to be difficult to gauge, because the markets will have a lot to worry about as far as headlines are concerned involving a potential trade war with the US and China. I believe that the market will find plenty of reasons to be skittish, so Silver could get even more volatile than we’ve seen as of late.
Your capital is at risk
The $16.25 level underneath continues to be support, and I think that if we can bounce in there, it’s likely that we could see this market reach towards the $16.50 level on the come back, and possibly even the $16.75 level. I don’t have any interest in trying to short this market, I believe that longer-term we are building up a base to continue going higher, as precious metals do offer a bit of a haven against the troubles when it comes to longer-term situations. I think that if the $15.50 level underneath will be supportive as well, so I think it’s only a matter of time before the pullbacks offer buying opportunities. I like the idea of buying physical silver, or small positions, but I also realize that futures traders will continue to pick up the dips as well, but you need to have the appropriate.