RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

On August 19, December silver is trading at 17.21, up about 21 cents on the day with the daily low of 16.93. A pullback in the US dollar index once again assisted the pop in silver. Silver is getting into attractive price levels with lows holding near 17.00. The weekly chart below shows that support structure is in place to facilitate higher price action. Momentum will probably send silver to retest 17.50 levels. A break above that will probably entice farther rally. All that said, a break below 16.80 in the December contract will likely put us into near-term lows.

Since silver saw a high of 18.205 on September 8, 2017, the market has been in the downtrend; however, since the commitment of traders with options report (COT) from last week shows non-commercial held 58,351, we may see more longs in this week’s report that will be released this Friday. I suspect that if the dollar correction to the upside ends in near term, silver will likely stabilize and probably head higher. Silver needs a catalyst to further drive gains, such as liquidation in equities or some increased concern coming out of North Korea.

Those who want to be long in silver will be better served if they come in on strength rather than weakness. That said, a close above 16.90 should provide that near-term lows are possibly in.


Dec ’17 Silver Weekly Chart

Dec '17 Silver Weekly 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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