The silver markets continue consolidation as risk aversion proves to be the main keynote. Traders in the North American session will be battling a difficult jobs report, and while silver has a significant manufacturing component the charts show a bit of risk on view. The bull camp still very much so seems to be in control here and if the dollar continues its pullback we may see silver test the upper range in its consolidation stage. There has been continued talks on capitol hill by U.S. lawmakers to push for even more stimulus which if done could very well help the bulls here as well.
Silver holds support at the lower range of its consolidation of $14.74 where buyers have continued to step in. The daily stochastics have crossed over which should be bullish and will help in silvers test of resistance at the $15.72 and $16.00 dollar levels. We would like to see this level break for a potential continuation of the trend and would serve as caution for the bears. The next area of resistance remains at $16.33.