RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Silver in Bear Trap Mode

Posted 04/25/2019 11:11AM CT | Eli Tesfaye

July ’19 silver futures continue this week’s trend of lower highs with downward momentum. The bulls haven’t been able to have a sustained rally since the double top in February 2019. Risk sentiment has been steady with a multi-month bull run in the indices and crude oil providing a bearish tone to gold and silver. Inflation continues to read below Fed target, and with the no near term geopolitical concerns, the trend continues to favor the bear camp. However, from a technical perspective, silver is coming to support that I think will hold for a while. Lately, it seems that much of the safe-haven purchases that might lend strength to gold and silver favored the US dollar, which is seeing significant new highs and adding pressure to silver.

This morning, silver futures are trying to hold above $15.00, as the dollar index, E-mini S&P, and crude oil all are in profit taking mode. Again, the bear camp continues to hold technical advantage; however, the inside day chart set up below give the bulls a bit of technological edge. If we close the week with trade above $15.00, near term lows most likely be fast approaching.

Silver Jul ’19 Daily Chart

Silver Jul '19 Daily 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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