Precious Metal Futures Continue To Shine

Gold Futures

Gold futures in the August contract settled last Friday in New York at 1,810 an ounce while currently trading 1,902 up about $92 for the trading week as prices are right near all-time highs trading higher for the 5th consecutive session.

If you have been following my previous blogs, you understand that I thought gold prices would break 2,000. I think that could possibly happen in next week's trade as prices still look cheap, in my opinion, and if you are long a futures contract continue to place the stop loss under the 10-day low standing at the 1,791 area as an exit strategy.

Gold prices are trading far above their 20 and 100-day moving average as this is the strongest trend out of all asset classes at the current time. Who knows how high prices can go as that is why the theory states to hold on to winners and exit losers quickly.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Silver Futures

Silver futures in the September contract settled last Friday in New York at 19.76 an ounce while currently trading at 23.03 up over $3 for the trading week with prices touching a 6 year high. I have been recommending a bullish position over the last month or so from around the 18.61 level, and if you took that trade, continue to place to stop loss under the 10-day low at 19.24 as the exit strategy. However, the chart structure will improve in next week's trade; therefore, the monetary risk will also be reduced.

Silver prices are trading far above their 20 and 100-day moving average as the trend is strong to the upside, and if you had been following any of my blogs you understand I thought prices would break the 20 level which already has occurred, and I do think we will flirt with the 25 level in next week's trade.

Gold prices are hovering right near an all-time high cracking the 1,900 level. I also have a bullish platinum trade, which continues to move higher weekly as this whole sector is on fire, so stay long and continue to place the proper stop loss. I think $30 is a real possibility for silver in the coming weeks ahead.

Fundamentally and technically speaking, this market has everything going for it at the current time. I don't think that situation is going to change anytime soon, especially when the Federal Reserve says they will do anything to back up this economy. That is a lovely thing to hear if you're bullish silver.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Platinum Futures

Platinum futures in the October contract is currently trading at 954 an ounce after settling last Friday in New York at 849 up over $100 for the trading week as prices have now hit a 5 month high. The platinum's volatility has exploded over the last week, and I don't think that situation is going to end anytime soon.

I have been recommending a bullish position over the last month or so from around the 868 level, and if you took that trade, continue to place the stop loss on a closing basis only at 825 as an exit strategy. However, the chart structure will start to improve in 4 trading sessions. Therefore, monetary risk will be reduced. If you have been following my previous blogs, you understand that I thought a possible rounding bottom chart pattern had occurred over the last month. I think prices will now test the January 19th high of 1,031 in the coming days ahead as the entire precious metals sector looks to move higher, in my opinion.

Platinum prices are finally joining the party as silver and gold, and the rest of the sector continues to hit contract highs almost daily as historically speaking, prices still look cheap, so stay long.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

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Corn Futures

Corn futures in the December contract is currently trading at 3.35 a bushel after settling last Friday in Chicago at 3.39 down about $0.04 for the trading week experiencing a very mild trading manor. At the current time, I'm not involved. Still, I do think there's a high probability that the contract low which was hit on June 26th at 3.22 will hold and if you are long a futures contract, I would place the stop loss at that level as an exit strategy as the risk would be around $600 per contract plus slippage and commission.

My only grain recommendation is a bullish soybean trade, which is stuck in the mud as prices continually bounce off major support around the 3.30 level waiting for some fresh news to dictate short-term price action. Weather conditions in the Midwestern part of the United States are excellent with adequate rain and mild temperatures as we should develop an outstanding crop in 2020 as that is what is keeping a lid on prices.

Corn is trading below its 20 and 100-day moving average as the trend is mixed to lower. However, I think this commodity is limited in both directions, so look for another market with higher profit potential.

TREND: MIXED
CHART STRUCTURE: IMPROVING
VOLATILITY: AVERAGE - LOW

Live Cattle Futures

Cattle futures in the August contract is currently trading at 101.15 while settling last Friday in Chicago at 103.27 down over 200 points for the trading week as prices are right near a 2 week low.

I have been recommending a bullish position from around the 99.80 level. If you took that trade to continue to place the stop loss at 98.42 as an exit strategy, we will roll over into the October contract, most likely on Monday as these numbers will change as I still believe higher prices are ahead. If you look at the daily chart, a possible rounding bottom chart pattern may have developed just like it did in the platinum market.

I still think prices will break the 105 level in the coming days ahead. Cattle is trading far above its 20 and 100-day moving average as the trend remains to the upside as the volatility has come to crawl over the last week, and I don't think that's the choice is going to last much longer. I remain bullish on most commodities because the U.S. dollar has now hit another fresh 6 month low.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Soybean Futures

Soybean futures in the November contract are currently trading at 8.99 a bushel after settling last Friday in Chicago at 8.95 down slightly for the trading week. The volatility has slowed down tremendously. I have been recommending a bullish position over the last month or so from around the 8.97 level. If you took that trade, the stop loss has now been raised to 8.73 as an exit strategy, and the chart structure will also improve in next week's trade; therefore, the monetary risk will be reduced substantially.

Ideal weather conditions in the Midwestern part of the United States are keeping prices at bay with average temperatures and above-average rain, which continues to develop an outstanding crop that will be harvested this fall.

Soybean prices are trading above their 20 and 100-day moving average as the trend remains to the upside. However, for the bullish momentum to continue, prices have to break the July 6th high of 9.12. The growing season only has about 5 weeks remaining. At the current time, this is my only recommendation, but I do think the grain market in general looks cheap, especially when compared to the U.S. dollar, which has now hit another 6-month low in today's trade, so stay long.

TREND: HIGHER - MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: AVERAGE - LOW

If you are looking for a futures broker feel free to contact Michael Seery at 630-408-3325 and he will be more than happy to help you with your trading or visit www.seeryfutures.com

Michael Seery, President
Seery Futures
Facebook.com/seeryfutures
Twitter–@seeryfutures
Phone #: 630-408-3325
mseery@seeryfutures.com

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor. My opinion in this blog are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any futures or option contracts.

2 thoughts on “Precious Metal Futures Continue To Shine

  1. In the slang of the cryptocurrency traders, if you are long, stay long and be a HODL'er. HODL means: Hold on for Dear Life! I'm long both gold and silver and like these trades, and I think gold is for sure going to hit $2,000...maybe 2,300. Also agree with Mike, on silver...we could see $25-26 easy. The only concern here is that these trades are getting a bit crowded.

    If gold & sliver are too lofty for you, and you want to get in on the ground floor on something, I think that buying Lean Hogs could be a real winner by the end of the year. There are both technical and fundamental factors working in favor of increasing prices.
    Further, a 50% retracement of the highs we saw in Nov 2019 will get you to about 70c per lb. From today's prices, which are in the in the low 50's gets you a gain of $6,500 to $7,000 per contract.

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