Keeping A Close Eye On Silver

Keeping A Close Eye On Silver
Keeping A Close Eye On Silver

Silver Futures—Silver futures in the December contract is currently trading higher by 13 cents at 17.67 an ounce as prices have been stuck in a 3 week consolidation looking to breakout to the upside in my opinion.

Prices have dropped about $2 since late August or 10% as I still believe the downside is very limited in silver as I will not take a short position as I will wait for a 4 week high to develop then a bullish recommendation could be at hand as I want the risk / reward to be in your favor. Volatility in recent weeks certainly has slowed down as the entire precious metal group looks to be consolidating except for palladium which hit another all-time high as I still think that commodity has room to run so be patient as we could be involved in a bullish position possibly in next week’s trade.

Silver prices are trading slightly below their 20 day moving average which stands at 17.80, but still above their 100 day as this tells you that the trend is mixed to sideways as another interesting leg-up could be developing.

Fundamentally speaking the precious metal prices are also seeing carry-over support from the Fed’s announcement last Friday that it will start injecting reserves into the banking system with monthly T-bill purchases of $60 billion per month to alleviate the recent squeeze in the short-term funding markets.

TREND: MIXED

CHART STRUCTURE: IMPROVING

VOLATILITY: AVERAGE

 

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