We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.
Silver futures in the July contract settled last Friday in New York at 16.40 an ounce while trading at 16.83 up about 40 cents for the trading week. It remains in a very choppy trend as prices are trading right at their 20-day but still below their 100-day moving average which stands at 17.46 as I'm currently not involved in this commodity. The U.S dollar is down another 60 points hitting a 7 month low, and that is helping support the precious metals and the commodities in general. Silver has been relatively volatile with big upswings, and big downswings so wait for better chart structure to develop and a true trend as well. Historically speaking I still believe silver prices are relatively cheap and that the downside is limited as the volatility should be to the upside in my opinion with prices right near a 3 week high. Prices bottomed out 2 weeks ago around the $16 level which was also major support as we had tested that level multiple times in December. It looks to me that silver prices are headed higher, but the risk/reward needs to be in your favor which at this time is not.
CHART STRUCTURE: SOLID