Silver markets fell during most of the session on Thursday, only to bounce back off of the $26 level that has been so supportive during the recent consolidation in this market. We don’t see any massive catalysts coming in the short term, so a bounce from here is more than likely. The fact that the day finished as a hammer suggests that we will see a bounce in the short term, perhaps to the $29 level.
Because of this, we are willing to buy this market for a very short-term trade if we can break the highs from the Thursday session. As for selling, we need to see the $25 level give way, something that we think will happen sooner or later – but not quite yet.