Silver Reaching Historic Level

NEW YORK (January 23) The silver market looks as if it is trying to do everything it can to reach the $100 level. Ultimately, this is a market that I think the $100 level has been a target for a while. Now that we have gotten close to it, we have pulled back just a touch, possibly showing the potential “importance” of the $100 area, due to headlines, etc.

Whether or not we can break above there, I don’t think is the real question here. The question is whether or not we need to pull back a bit in order to find a certain amount of value going forward. The $90 level could be a bit of a floor, but really, at this point in time, this is a market that is just squeezing higher. The one thing that I do know is you cannot short Silver anytime soon. It is far too strong at this point in time.

A Parabolic Market

I think eventually we will break above the $100 level and just continue going higher. I know a lot of pundits out there are calling for $120. Quite frankly, I think that’s a number that’s just picked out of thin air because we could probably go higher than that at this point.

The market is parabolic, so someday it may get a pullback that is extraordinary. Because of that danger, you have to be very cautious with your position sizing. Clearly, this is a one-way trade. If it drops a bit and bounces, it is probably offering Silver on sale, as it has multiple times previously.

FXEmpire