December silver is trading 22.455. down 25 cents for the day. It is a surprise as to why silver is so weak in light of weakness in the US dollar contract. It’s important to note that we are getting close to seasonal lows. I would be cautious about initiating a new short position from this price point. However, the weekly chart below does show that the bear trend is in full force.

From a technical perspective, although silver is oversold, the market remains, and a breach below 22.00 would further erode the price. A close over 23.50 is needed to negate downside pressure. Give me a call or email me to discuss trading or hedging strategies from these levels.

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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