After reaching a two month high this week gold and silver futures took a step back on outside factors like a rising a dollar and Janet Yellen. Yellen was the spear that broke the market after a hawkish speech indicating two–three rate hikes this year may be in play. The inflation data also showed an uptick and will be something traders would want to keep an eye on going forward. The fluctuations in the dollar index due to this data is going to play the biggest role in silver, along with Trump's policies and tensions with China.
Technically keep an eye on this downward channel that is in place. All too many times I have seen traders fall for the upside breakout and become disappointed. Classic studies found in the RJO PRO platform like stochastics, Bollinger bands and RSI are good ways to locate these overbought levels. Only a push through $17.50 or a break below $16.50 would indicate the next medium term trend.
Series 3 Licensed
Senior Market Strategist
Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker.
As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.