September Silver is at an interesting crossroads for traders and chart watchers. The market is locked against the $15.80 support level, a level which has shown congestion and conflicting interaction between buyers and sellers over the last two years. The idea is that with silver at its current price level is simple: A convincing close below $15.80 and the door is open for a retest of the December 2015 lows near $13.70. Conversely, if silver holds above the $15.80 support level the long side becomes very inviting. With the Commitment of Traders finally reflecting a major reshuffling of spec long and commercial short positions, the opportunity for courageous bulls to step in is ripe. The risk to longs is easily defined and minimal, as a close below $15.60 clearly signals red flags to the bull camp.
Chart provided by Barchart.com
We continue monitoring outside markets such as the stock indexes, treasury futures, and Dollar Index, however there is no clearly defined correlation in those markets to the metals. It is important to be aware of what is happening in the outside markets and anticipating trading road blocks which may lay ahead, rather than blinding moving about.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. Past results are not indicative of future results or performance. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
Contact Us Today
Get free guides and special offers in the Resource Center.
© 2017 Archer Financial Services, Inc.
This is not a solicitation of any order to buy or sell, but merely a collection of information related to Archer Financial services and commodities trading provided by Archer Financial services. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor do they purport to be complete. No responsibility is assumed with respect to any such element, nor with respect to any expression of opinion herein contained.
The risk of loss in trading futures and options on futures can be substantial. Each investor must carefully consider whether this type of investment is appropriate for them. Past performance is not necessarily indicative of future results.