RJO FuturesCast

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Metals

Silver Setting Up For a Run

Posted 02/28/2019 11:26AM CT | Eli Tesfaye

Front-month May silver is trading 15.670 down 9 cents on the day. Silver is tracking equities this morning to the downside as conflict between Pakistan and India cools off. With the lack of bullish catalyst news, the market is drifting to sideways to lower.

Silver/gold ration is back above 84.00 as pressure mounts on silver. The chart below shows a repeated flag formation, but silver struggling to make a decisive move to the upside. Also, the chart is not convincing quite yet that the highs are in, but additional weakness is possible.  Again, a close below 15.00 most likely signal near term high, otherwise we are just looking at a consolidation for more potential upside.

Silver May ’19 Daily Chart

Silver May '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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