RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Sept silver is trading $16.55 down less than a cent. It was disappointing to see the lack luster price action in silver even with a sharp decline in the US Dollar this week. The weekly chart below shows the pin bars. Usually, when I see chart pattern like the one below, it is a sign that selling pressure is waning. This afternoon the government will release their Commitment of Traders with Options Report. The non-commercial and non-reportable combined held net long of 59,176 contract. Most probably this number will increase from this Tuesday reading.

From technical prospective, trade looks like it has a bit of support. As I have stated before, weakness in silver could be forgiven provided it continue to hold above $16.00 in September contract. Market will probably will not see any interest unless we get a break above low $17.00. Any sustained close above lows at $17.00 will probably start a momentum run to the upside. It will set up a higher low against the December 2016 low, signaling near-term lows. 

Silver Weekly Chart

Silver Weekly 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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