Silver markets shot higher during the trading session on Thursday again, but have turned around near the $19.50 level, to form a bit of a shooting star midday. It looks as if we are going to try to go looking towards $19 to find buyers again. At this point in time, I think that the market is going to continue to see a lot of volatility, but clearly there are buyers underneath waiting to get involved. With that in mind I look at this as a value proposition and would love to be buying silver again on some type of a bounce from either the $19 level or possibly even as low as $18.60. This would simply be a retest of a breakout, something that we see quite often.
SILVER Video 10.07.20
With that being the case, simply being patient and waiting for value underneath is probably the best way to play this market. The Thursday session was a bit erratic and shaky, so I would not read too much into this pullback other than we did not have enough follow-through to continue straight up in the air. That should not be a huge surprise but look at this as an opportunity to pick up silver “on the cheap.” With this being the case, I will wait for a daily support of candle to go long or I would buy a break above the top of the candlestick for the trading session on Thursday. Either one works for me and I will take a look at this every 24 hours to place that trade.
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