A Silver Rally is Coming

June 8, 2018 9:58AM CDT

Silver and the PMG are set to have a big week with the FOMC meeting on Tuesday and Wednesday with a rate hike expected. The last two rate hikes have seen selling come into the announcement followed by a sharp rally in days after. Also, on June 12 is the historical summit between Kim Jung Un and President Trump. I would expect to see silver futures start to track higher given its strong correlation to copper, which is nearing a four year high. The key level of resistance in silver is the 200-day moving average at 16.92/oz. On a closing basis if we see a multiple day close above this level we should be able to see an attack to $17.50/oz as indicated on the July daily chart below.

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

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.