What a difference one week makes with expectations of a March rate hike jumping from 26% to 76%. It appears that inflation concerns have far exceeded our consensus. Although silver has benefited from industrial demand, dollar strength has been weighing in. I am under the impression that this may be another case where the market rallies once the FED finally does raise rates. Repealing Dodd Frank may also provide an underlying support by enabling banks to take advantage of more flexible lending, which may increase credit available to consumers, thereby creating more inflation. Looking at a chart, we see a high level of resistance at $18.50, and $16.00 as a key level of support. With a 38% retracement on the Fib, we may see the selling subside once we hit $17.50.

 

Silver Daily Chart

Phillip Streible

Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.