As you can see on the chart, silver is trying to break through a well definied resistance (in cyan blue) at 16.857.
Silver as been in a downtrend chanel since early September, after a powerful rally to the upside, where silver got overbought.
I don't think we will bounce now, maybe we will have to wait for a couple of days or a week. If you want to minimize risk, you could wait for a breakout to the upside of the downtrend chanel before buying (green circle).
We could see the price sliding down (yellow arrown) and testing the bottom of the downtrend chanel before it bounces. A Bounce at that level would be much more probable, as Silver would be well oversold and the price would be sitting near the 0.786 fibonacci retracement (yellow line).
I personally think silver is cheap as dirt and waiting for the price to go lower before buying it would be unnecessary greed. There is much more potential to the upside than to the downside.
Silver as been in a downtrend chanel since early September, after a powerful rally to the upside, where silver got overbought.
I don't think we will bounce now, maybe we will have to wait for a couple of days or a week. If you want to minimize risk, you could wait for a breakout to the upside of the downtrend chanel before buying (green circle).
We could see the price sliding down (yellow arrown) and testing the bottom of the downtrend chanel before it bounces. A Bounce at that level would be much more probable, as Silver would be well oversold and the price would be sitting near the 0.786 fibonacci retracement (yellow line).
I personally think silver is cheap as dirt and waiting for the price to go lower before buying it would be unnecessary greed. There is much more potential to the upside than to the downside.