March silver started the last day of the week trading lower after trading up from Tuesday’s low of 24.04 to a high for the week of 26.13 yesterday. Despite the stock market being lower, the risk off aspect hasn’t translated into the silver market yet. Talks of the virus worsening and causing more shutdowns around the world are pressuring the metals markets. Despite the US dollar showing weakness this week, trading down from Monday’s high of 90.94, the bulls couldn’t get a rally extended to the recent highs from earlier this month. Bulls are wanting to see a steady reduction in virus numbers continue as an opening of the economy would increase demand and e much more likely to kickstart inflation, driving the price higher. If there is an uptick in the virus numbers and restraints remain on the economy more pressure on the metals markets is expected. Also, a bearish close to end the week would suggest follow through selling to start next week. Resistance for the March contract comes in at 26.13 and a close above this level would need to re establish the trend higher and make a move up to the 27.50 level. March silver will need to hold $25 or a move down to 24.40 could be seen.

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