Silver markets initially fell on Wednesday, but found enough support near the $16.20 level to turn around and break out to the upside
SILVER – Silver markets initially fell on Wednesday, but found enough support near the $16.20 level to turn around and break out to the upside. It looks likely that we will continue to reach towards the $16.50 level, an area that will attract a lot of attention. I believe that the market has a bit of a “floor” in it near the $16 level, and as a result I think that any move towards that area will have a lot of buying pressure into the market. A breakdown below there would of course be very negative, but I doubt that’s going to happen anytime soon. Quite frankly, I’m very interested in buying silver, but I recognize that this is more of an investment instead of some type of short-term trade. Short-term traders will be using a lot of leverage, I will be forgoing most leverage, and buying silver in physical bits as I believe we will go looking towards $20 over the next several months.
CRUDE OIL – The WTI Crude Oil market initially went sideways during the session on Wednesday, but as the Crude Oil Inventories number came out, it showed that demand had picked up for crude oil, so obviously drunk price higher. It looks as if the market is struggling near the $47 level though, so it’ll be very interesting to see how this turns out. At the first signs of exhaustion, I would be a seller as we are getting a bit stretch, but if we can break above the $47 level, it’s likely that the market will go looking for the $48 level. Either way, expect volatility but it looks as if the buyers are starting to flexor muscles a bit.
GOLD – Gold markets initially dipped on Wednesday, but found enough support under the $1240 level to turn around and bounce above it again. We continue to jostle back and forth, but I believe that longer-term buyers are starting to get interested in this market as the US dollar has been pummeled. I believe that a break higher will probably have this market looking for the $1250 handle, which is a large, round, psychologically significant number obviously. With this in mind, I am a buyer of dips, and I believe that there should be a significant amount of support at the $1235 level. The market has shown signs of strength over the last several days, as traders are starting to bet that the Federal Reserve cannot raise interest rates as quickly as once thought.
NATURAL GAS – Natural gas markets have tried to break above the $3.10 level, but we have turned around to form what could be a shooting star in the market. I believe that natural gas markets are overbought, and I also believe more importantly: oversupplied. As natural gas inventory announcements come out during the day today, it’s likely that we will see quite a bit of volatility and of course movement in the market due to that. I think that the $3.12 level above continues to be massively resistive, so I am a seller of exhaustive candles on short-term charts. Given enough time, the market should then go down to the $3.00 level, which will have a certain amount of psychological importance. However, and the end the market will continue to sell a market that has no real pricing power.
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