By: DailyForex.com

The silver markets had an absolutely explosive session on Thursday, slicing through the $20 level like it wasn’t even there. That area has been rather resistive, but recently I have been pointing out that it appears the market is trying to build up enough momentum to breakout. I have to admit though, the breakout has been rather strong and explosive, much more than anticipated. On top of that, I believed that the $20.50 level would be resistive as well. That level was cracked without much fanfare, as the market gained almost 4%.

With this, it should be obvious that the momentum is certainly with the buyers. Pullbacks on short-term charts should continue to see buyers step in over and over, as a lot of the sellers will have now found themselves in bad positions. They will cover as soon as they get a chance to save a little bit of money, not to mention the fact that so many traders out there would have missed this move. They will look at this candle as a signal to start buying, and I believe that pullbacks will attract them.

Metals markets on fire.

All of the metals markets I follow are on fire during the session on Thursday. Silver looks as if it’s ready to continue to go higher, and I believe that the first thing that we will run into as far as resistance is just above at the $21.00 level. However, I believe that pullbacks will find enough momentum to push through that level and head towards the $22.00 level. That area is actually my longer-term goal, and that’s $22 level is vital in determining where this market goes going forward now. If we get above there, this market should head to the $25 level next, which of course would be a very significant move in the highly leveraged silver futures.

Options markets are doable as well, as are CFD markets. This allows the smaller trader to get involved in the silver markets, which of course asks for large amounts of margin, and can be very dangerous to trade if you have a smaller account.

Silver USD 62014

Related Articles
  1. Mutual Funds & ETFs

    ETF Analysis: PowerShares FTSE RAFI Emerging Mkts

    Learn more about the PowerShares FTSE RAFI Emerging Markets ETF, a fundamentally weighted fund that tracks emerging market equities.
  2. Mutual Funds & ETFs

    ETF Analysis: iShares Cali AMT-Free Muni Bond

    Learn more about the iShares California AMT-Free Municipal Bond exchange-traded fund, a popular tax-advantaged ETF that dominates its category.
  3. Retirement

    Infographic: How Much Money Do You Need to Retire in Hawaii?

    In this infographic we break down cost of living in Honolulu, Hawaii in terms of taxes, rent, food and other expenses and offer comparison to the cost of living in New York, Los Angeles, San ...
  4. Fundamental Analysis

    10 Major Companies Tied to the Apple Supply Chain

    Apple has one of the best supply-chain models. Here are some of the top businesses involved, and the benefits and challenges for all.
  5. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Emerging Markets Dividend

    Learn more about the SDPR S&P Emerging Markets Dividend Fund, a yield-focused exchange-traded fund tracking global emerging economies.
  6. Mutual Funds & ETFs

    ETF Analysis: First Trust Dow Jones Global Sel Div

    Find out about the First Trust Dow Jones Global Select Dividend Index Fund, and learn detailed information about characteristics and suitability of the fund.
  7. Term

    Why You Should Consider Investing In the Tech Industry

    The technology industry offers huge investment opportunities.
  8. Mutual Funds & ETFs

    ETF Analysis: U.S 12 Month Natural Gas

    Learn about the United States 12 Month Natural Gas Fund, an exchange-traded fund that invests in 12-month futures contracts for natural gas.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares Floating Rate Bond

    Explore detailed analysis and information of the iShares Floating Rate Bond ETF, and learn how to use this ETF as a defense against rising interest rates.
  10. Investing News

    Netflix Stock Tumbling

    Shares of Netflix, the popular video streaming service provider, plunged by roughly 13% in the week starting August 31, 2015 amid rising competition in the video streaming industry.
RELATED TERMS
  1. Sticky Wage Theory

    An economic hypothesis theorizing that pay of employees tends ...
  2. Cost Of Funds

    The interest rate paid by financial institutions for the funds ...
  3. Earnings Before Interest & Tax ...

    An indicator of a company's profitability, calculated as revenue ...
  4. Implied Volatility - IV

    The estimated volatility of a security's price.
  5. Plain Vanilla

    The most basic or standard version of a financial instrument, ...
  6. Operating Cost

    Expenses associated with the maintenance and administration of ...
RELATED FAQS
  1. Can mutual funds outperform savings accounts?

    A mutual fund can – and should – outperform a savings account. In most cases, it should not even be a close race. Savings ... Read Full Answer >>
  2. Can mutual funds invest in private companies?

    Mutual funds can invest in private companies, which may come as a surprise to many investors. It is rare for a fund to have ... Read Full Answer >>
  3. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  4. Can my IRA be garnished for child support?

    Though some states protect IRA savings from garnishment of any kind, most states lift this exemption in cases where the account ... Read Full Answer >>
  5. Why is my 401(k) not FDIC-Insured?

    401(k) plans are not FDIC-insured because they are typically composed of investments rather than deposits. The Federal Deposit ... Read Full Answer >>
  6. Can I use my IRA savings to start my own savings?

    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!