Silver Facing Downside RejectionPosted 11/16/2018 8:15AM CT |
December silver is up about 8 cents on the day, trading at $14.355. What is interesting, is that the dollar is strong as well today. Given the strength of the dollar and firm “bid” for silver suggests that more upside is possible. As you see on the weekly chart below, double bottom type price action is forming in silver. If this holds, near 15.00 is where the next formidable resistance is from technical prospective.
In my last blog, I mentioned the gold/silver ratio, which is now at a 25-year high, with gold worth about 85.42 times more than silver. It is possible that this fact alone could interest some silver speculators to want to own silver at these levels. Again, from the technical perspective, silver is fighting to hold above 14.00. For now, a close below 14.07 in the December futures will signal further weakness. From current levels of $14.60, mid 15.00 is likely.
Bullish Butterfly/bull call options with a limited risk might be ideal in this market or look at the 1000 once silver contract to test the waters as well.
Silver Weekly Chart