By: DailyForex.com

The silver markets as you can see had a slightly positive session on Monday, breaking above the $20.00 level during the day. However, you can see that the selling pressure arrived later in the day, pushing the market back down below that level. On the chart, you can see that the Fibonacci retracement has been drawn, and that we have bounced off of the 61.8% level. This is just below the $19.80 handle, and a site of significant resistance previously. Because of that, I believe that the market is going to bounce sooner or later, but it seems like we need to have a little bit of an “accumulation phase” in the meantime.

Looking at this chart, I think that we could go as high as the $21.50 level, but there will be areas of interest along the way. After all, the $20.00 level is an area that has attracted buyers and sellers, just as the $20.50 level had, and the $21 level before that. I believe that the market should continue to look to these large numbers for guidance.

Longer-term trade.

I believe that this is a longer-term trader waiting to happen, and that a move above the $20.20 level is reason enough to start buying again. I think that is going to take a significant amount time to get back to the $21.50 level, so I’m thinking of this more or less as an investment and not so much a trade. I have been buying silver in physical form, and believe that this is probably a nice vessel for retirement accounts and long-term investments. The volatility of the silver markets will probably continue to make this almost impossible to deal with, at least as far as futures markets are concerned.

There is the possibility of trading silver via options or even CFD markets, as it allows you to control the amount of risk that you put into each trade. The futures markets will be no place to trades over at the moment, and as a result you need to think either long-term, or small.

silver 81214

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