RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Critical Support Level in Silver

Posted 03/07/2019 9:59AM CT | Frank J. Cholly

May silver futures have traded both sides of $15.00 this morning. This is a critical support level after having pulled back $1.30 since posting a new swing high of $16.295 on February 20th. Technical traders are calling that swing high a “double top” now. The market correction is not limited just to silver, gold has had a big down side correction also as traders exit the “safe-haven” trade.

I view this correction in silver as a good long term buy opportunity. Silver is relatively cheap at $15.00 and clearly there is big support at this level. It is usually just a level on the chart that stops and reverses a market’s direction. I would expect that the market takes a breather at this level as the selling seems to be exhausted now. It’s still too soon to call a bottom in silver, so give it some time to base a new 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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