Silver Remains in Sideways Channel

May 25, 2018 9:54AM CDT

Silver has traded higher this week but started the day lower off highs at 16.740. The silver market remains in a sideways pattern between support at 16.250 and resistance at 16.750; driven higher mainly as a result of the US pulling back from the North Korean Nuclear Summit and potential US rate hike fears coming in June. The dollar’s strength despite soft US data should be cautionary for silver bulls. A close above the 60-day moving average reverses the short-term trend to the upside and closing well off the day’s lows on Monday and Wednesday supports a move higher. Momentum studies trending higher will add to a move to the upside on a close above resistance at 16.750. The next target should the trend continue higher is at 16.965. Should the market fail to break resistance, support comes in at 16.540 and a close below 16.350 should reverse the trend to the downside.

Silver Jul '18 Daily Chart

Silver Jul '18 Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.