RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

This week we saw the December silver market chop sideways, staying in a range of 24.215 and 25.425, with the high being posted on Wednesday. Even with the US dollar moving lower this week, the silver market seemed to take more focus on the status of a stimulus package and whether it will be passed before the election. Reports of a possible inflationary environment also seemed to be ignored by the silver market this week, an event which would be supportive to both gold and silver if it happened. Even the better than expected US economic data that was seen yesterday was unable to garnish much support. If we were to see a stimulus package agreed upon today, silver should push through resistance and out of this sideways range it has been in since falling to new recent lows in the second part of September. If a stimulus package isn’t passed today and more importantly hinted that it won’t be passed until after the election, then expect to see silver fall lower to support around 23.65-23.85. Resistance comes in around 25.50-25.70 and that’s the area we would need to see the market trade through to re establish the trend to the upside. From a technical standpoint it looks like December silver is going to make a breakout in one direction, I feel that it depends on the fundamental data we receive to determine the direction.

Silver Dec ’20 Daily Chart
800-826-2270312-373-5099Series 3 Licensed

Tyler Herrmann

Senior Market Strategist
Tyler attended Kansas State University where he majored in Agricultural Economics. He started his career in the futures industry with an IB in North East Kansas where he worked with farmers and cattleman to hedge their risk in the market and protect profits with a variety of futures and options strategies. Most recently Tyler has joined RJO Futures as a market strategist.
Read More