RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Silver Futures at Shinny Cross Road

Posted 03/09/2018 8:48AM CT | Eli Tesfaye

May silver is trading 16.44 down about 5 cents on the day. In previous articles I discuss the potential of silver bottoming. The strength of the dollar has kept silver bulls from making a decisive breakout to the upside. Technically, neither the bulls nor the bears have a real clear advantage at this time. Metals, especially silver, are still holding on tight consolidation in a range type of price action between 15.00 and 18.00. Seasonal trends have silver favorable to the upside. Since silver is in non-trending “choppy” price action a breakout strategy using options with limited risk might be ideal.

With positive Employment Satiation number this morning, silver didn’t wash down hard in anticipation of more rate hikes in the coming months. The future impact of White House “trade war” would have on the silver market remains to be seen. One thing is certain, this Administration will bring a lot of volatility to the market place.

Near-term, from a technical prospective, a break above 17.00 will set a stage for near-term lows. Any break below 16.00 per close bases will leave the 15.50 range a downside target. Please call my office to discuss trade ideas. As I stated above, options could be the ideal vehicle to participate in the market with a limited risk. Also, silver has a 1000oz contract that you can test the water without tying up too much capital.

Silver Weeklysilver_weekly_chart 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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