RJO FuturesCast

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Metals

Bottoming Action in Silver Futures

Posted 04/17/2019 9:29AM CT | Frank J. Cholly

In my last article, I identified $14.75 as the next downside level to watch. This week’s low, so far, is $14.795 for the May silver. The U.S. equity markets continue to move higher and the dollar is still relatively strong. Silver and metals in general will have a tough time moving higher with so much strength in the equity markets. While the Fed remains dovish, they should also remain data dependent on Fed policy decisions. Recent data on CPI and PPI have been somewhat inflationary. Any hint of a rate hike in 2019 and the silver market will rally, and the equities will correct to the down side.

While the short-term trend in silver is still technically down, a little punch over $15.00 will quickly reverse the trend to sideways. While recent trade has been choppy the market doesn’t have downward momentum and therefore I see it as basing a bottom.

Silver May ’19 Daily Chart

Silver May '19 Daily Chart

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Frank J. Cholly

Senior Market Strategist
Frank brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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