RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Silver Breaks Down Below Support

Posted 09/27/2019 8:55AM CT | Eric Scoles

Dec ’19 silver breaks down below support as the precious metals pull back from their late summer highs. The lack of bullish sensitivity to many recent geo-political concerns from impeachment talks to explosive sabotage on Saudi oil production is concerning for the bulls. There is still support from fundamentals in that ETFs have continued to add to their holdings and seasonal gold purchases from India may drive gold up and support silver. From a technical perspective though, the chart damage is currently significant, and prices have fallen below what seems to be an important level. You’ll note on the weekly chart that the price level of about 17’555 seems to divide between bull and bear trends since at least 2015. While It’s possible that it may just be a bull flag before the next rally, I’d recommend a high level of caution to bulls if prices remain below that level.

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Eric Scoles

Market Strategist
Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.
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