Silver Futures—Silver futures in the May contract is trading lower for the 2nd consecutive session down $0.70 at 24.07 an ounce or 2.85% as many sectors were sharply lower across the board today as the bearish short-term momentum continues.
If you have been following my previous blogs you understand that I looked to be a buyer around the 24.00 level, however today was not a good close as I think we could drip a little further down so be patient as I think the 23.50 area could be tested possibly in tomorrow’s trade so continue to sit on the sidelines and wait for a better opportunity.
Silver prices are trading below their 20 and 100 day moving average as the trend remains to the downside as gold prices were down nearly $30 today as I see no reason to own gold at the current time and that is hampering silver prices in the short-term, but the downside is limited with an extreme possibility of the $22 level being touched. Silver prices hit a 3-1/2 month low due to the fact that the dollar index today to a 4-1/2 month high which is undercutting metals prices along with a jump in Treasury yields.
Also, a U.S. plan to ramp up the pace of Covid vaccinations has reduced the safe-haven appeal of precious metals. At the current time I do not have any precious metal recommendations as they all look weak as all of my trades are in the soft commodity sector which were also lower today, but I still believe silver will present itself a terrific buying opportunity soon.
CHART STRUCTURE: POOR
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