Silver markets didn’t do much during the session on Monday, as we continue to go nowhere. The market is currently stuck between the $17 and $17.50 levels. The markets shouldn’t be one to risk a lot of money in, as although there is a fairly well-defined range – I still think that the market will be very choppy. With this in mind, there are a few possibilities though, as ultra-short-term options in the binary markets can offer a bit of a chance.
I think that the market can be sold or puts bought closer to the $17.50 levels on short-term charts, with the target being somewhere closer to the $17 level. I am not looking for massive moves in this market, but recognize that there are a lot of smaller gains to be had. Because of this, I am not interested at all in being involved in the futures markets as the tick value is so high. (Not to mention the massive amount of margin needed.)
US Dollar continues to work against Silver
The US dollar gaining value lately has been working against the value of the silver markets, and I think it should continue to do so. The market will continue to focus on not only that, but the fact that the industrial demand is going to be lower as well.
The silver markets tend to be more volatile than gold, and as a result this is another reason I am thinking binary options or at least CFD markets are the way to go. The risk will be high in this market, but using those vehicles can mitigate some of the risk that would normally be seen in the futures markets.
With this in mind, I will continue to play the range, and simply collect small gains over and over. The market could be very quiet for some time, and this will be excellent for me as the market could offer quite a bit of opportunities going forward. As for buying, I wouldn’t do it until we closed on a daily chart above the $18 level.
