Is Silver keeping an eye on Trump policies?

January 12, 2017 9:42AM CST

President-Elect Trump will inherit rather a stable economy, and if his policies continue to stimulate farther growth, Fed will probably continue to tighten monetary policy and stymie inflation pressure to that extent any real change for a protracted bull run in silver might be limited. Of course, all of this could change if there is any geo-political concerns surface and to that regard do keep very close eye on South China Sea developments. Something to note, yesterday after the Trump press conference, dollar gave away a bit and caused a bit of silver pop. FYI, I am not recommending you day trade Trump press conferences, but I find it interesting. Recent price action in the dollar suggests sideways lower price action. With that in mind, any real pull back in silver could be seen as an opportunity to the upside.

I strongly recommend making a regular habit of keeping an eye on the Commitment of Traders with Options report (COT) that the government releases every Friday afternoon. Looking at price actions in recent days in silver, I would not be surprised to see the COT report coming out this Friday show more longs of Non-commercial and Non-reportable position coming to the markets.

From a technical prospective, trade moved support from 16.00 to 16.50; therefore, any pullback to 16.50 area will provide an opportunity to participate on the upside.  Please see the attached chart below. From my prospective, the weekly chart is friendly. Also, I have attached daily silver chart overlay over dollar index to show the impact of the high dollar had on silver. I am bullish on silver, with any real pullback as an opportunity. Any break above $18.00 will accelerate momentum.

Silver Weekly

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