FXEmpire | October 29 2012 10:14 EDT
There are few markets currently that we are more bullish of than silver. However, having said that we look at the chart and realize that we don’t see any type of bullish action at the moment. We have several different strategies we employ to take advantage of the rising prices in this market, and as such we are always on the long side of silver, but sometimes in different forms.
We own physical silver, and continue to buy it as prices lower. The SLV ETF is one of our core holdings, as it keeps us “long” of the silver markets and silver derivatives at the same time. When we get supportive action that looks like a nice buying signal, we simply add silver futures to our position. We are not selling silver under any circumstances right now, and as such it simply comes down to timing when the next leg up will be.
With all this being said, we think that there is support at the present level, as well as the $31.00 level, and most certainly at the $30.00 level which formed a gap back in August.
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Originally posted here