RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

On November 17, 2017, December silver is trading at 17.100, down about 2 cents on the day with the daily low of 17.02. A pullback in the US dollar index once again is helping to stabilize silver. First notice for December silver is coming up to the end of this month. Market would likely see a bump from the roll, as well as the technical improvement on the chart. Silver is getting into attractive price levels with lows holding near 17.00. The daily chart below shows the support structure in the short term to facilitate higher price action. Momentum will probably send silver to retest 17.50 levels. A break above that will probably entice farther rally. All that said, a break below 16.60 in December contract will likely put near-term lows.

Silver has been consolidating in a tighter range. The Commitment of Traders with Options report (COT) shows increasing non-commercial and non-reportable traders are steadily adding to their net long positions from the week ending November 7, 2017. No doubt that the bull camp needs a further catalyst to drive price higher. Decent correction in equities and/or fresh geopolitical concerns in hot spots around the globe could drive price higher. 

Bargain hunters can ease into the long side from these levels with a tight risk. Those who want to be long silver will be better served if they come in on strength rather than weakness.  That said, a close above 17.05 should provide that near-term lows are possibly in. The March silver contract is trading around 17.200 at this time. I expect to see strength in silver in the coming days. 


Dec ’17 Silver Daily Chart

Dec '17 Silver Daily Chart

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Eli Tesfaye

Senior Market Strategist
Eli started his career in the futures and options market while he was in graduate school finishing up his MBA in 2003. Eli specializes in Automatic trading strategies and systematic options trading strategies in futures market. He has been Series 3 license holder since 2005. Eli's is an avid reader, runner, and yoga practitioner.
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