RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

The Silver Channel Continues

Posted 06/23/2017 8:26AM CT | Phillip Streible

The downward washout that occurred over the past 2 weeks looks like it may be coming to an end and a possible upward sloping double bottom has formed. Silver imports in China have stepped up significantly year over year and could be the start of a new move. I would expect commentary from FED speakers to become more dovish going forward with the economy weakening and the interest rate hikes 2/3 complete this year. If you take a look at the daily silver chart keep an eye on the ADX which measures the strength of the trend. Currently the downward trend is weakening which could mean sideways to higher action lays ahead. The other chart to keep an eye on is the Gold/Silver ratio. Currently trading at 75 ounces of silver to 1 ounce of gold. This is historically high could be set for a correction with silver gaining on gold. 

 

Jul ’17 Silver Daily Chart

Silver Daily Chart

 

Jul ’17 Silver vs. Aug ’17 Gold

Silver/Gold

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Phillip Streible

Senior Market Strategist
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.
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