The silver markets tried to rally during the course of the session on Wednesday, but as you can see above the $19.20 level, we found far too much in the way of resistance. The resulting selling pressure ended up forming a shooting star for the daily candle, which of course is a negative sign. However, we have to wait to see what happens of the $19 level in my opinion, because it is an area that has been so important in the past. Yes, we did recently break through it, so in theory it should be easier to break down again. However, if it doesn’t get broken down easily, I think that shows that we are trying to form some type of bottom in this market.

If we get below the $19 level without too many issues, I think that we will ultimately break down to about $15. This is a market that has been beat down significantly, and as a result we may have to grind about this area for some time in order to break down and open the trapdoor so to speak. That trapdoor gets opened though, the move down could be rather drastic.

I’m still longer-term bullish though.

To be honest, I believe that silver will ultimately become very expensive. However, right now isn’t the time to be speculating on that type of thought process. I believe that longer-term traders will find this to be a market that can be bought into, but not yet. I am waiting on some type of nice supportive candle on a longer-term chart such as the weekly timeframe in order to start buying physical silver first, and then possibly options. The silver futures market is far too volatile inexpensive to be messing about trying to play some type of counter trend position.

All that being said, in the short term I certainly think that this market is ready to continue selling off, and as a result I will not argue that point. However, if we were to somehow get above the $19.50 level, I think at that point in time the buyers would start to assert their will again.

Silver 61214

Related Articles
  1. Financial Advisors

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  2. Professionals

    The Best Financial Modeling Courses for Investment Bankers

    Obtain information, both general and comparative, about the best available financial modeling courses for individuals pursuing a career in investment banking.
  3. Stock Analysis

    These are Twitter's 4 Biggest Bets for Next Year

    Looks at Twitter's plans for 2016 under CEO Jack Dorsey, who has returned to lead the company he founded seven years after he was replaced.
  4. Investing Basics

    Why Interest Rates Affect Everyone

    Learn why interest rates are one of the most important economic variables and how every individual and business is affected by rate changes.
  5. Entrepreneurship

    Top 5 Billionaires Living In Dallas

    Learn who the richest of the rich are in a city known for creating some of the world's wealthiest people, and read how they amassed their vast fortunes.
  6. Credit & Loans

    Best 3 Online Auto Loan Calculators that Include Tax

    Learn where you can find the best auto loan calculators online that include sales tax, and understand the different features these calculators offer.
  7. Taxes

    Tax Breaks For Volunteering

    Your volunteer ventures could earn you some welcome tax deductions, along with the satisfaction of helping others.
  8. Retirement

    5 Secrets You Didn’t Know About Traditional IRAs

    A traditional IRA gives you complete control over your contributions, and offers a nice complement to an employer-provided savings plan.
  9. Retirement

    Is Working Longer A Viable Retirement Plan?

    Fully funding someone’s life for three decades without work is tricky. The result is retirement has become, for many, a 30-year adventure.
  10. Retirement

    Don’t Retire Early, Change Careers Instead

    Though dreamed of by many, for most, early retirement is not a viable option. Instead, consider a midlife career change.
  1. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>
  2. Is Israel a developed country?

    Israel is considered a developed country, although it has substantial poverty and large income gaps. The International Monetary ... Read Full Answer >>
  3. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  4. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  5. Is the Wall Street Journal considered to be a conservative publisher?

    The Wall Street Journal is controlled by Rupert Murdoch via Dow Jones Publications, which in turn is owned by Murdoch's News ... Read Full Answer >>
  6. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>

You May Also Like

Trading Center