Weekly Futures Recap With Mike Seery

Crude Oil Futures

Crude oil futures in the November contract is trading lower for the 4th consecutive session after settling last Friday in New York at 58.09 while currently trading at 55.55 down about $2.50 for the trading week as prices have now hit a 10-day low.

If you take a look at the daily chart, the price gap that was created on September 16th has been filled in today's trade, and if you have been following any of my previous blogs, you understand that I do not like price gaps as they generally are filled just like what has occurred in oil.

Crude is now trading below its 100-day moving average as I am currently not involved as the volatility is too high as I'm advising clients to avoid the entire energy sector at this time.

Oil prices are at major support as this market has been incredibly choppy over the last 5 months as fundamentally speaking the main reason for the depressed prices over the last week is due to resumption of Saudi crude capacity from the Sep 14th attacks on its oil installations after Saudi Aramco said Tuesday that its total crude production capacity now exceeds 11.0 million barrels per day which is a week ahead of schedule.

TREND: LOWER - MIXED
CHART STRUCTURE: POOR
VOLATILITY: HIGH

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Weekly Futures Recap With Mike Seery

Palladium Futures

Palladium futures in the December contract is currently trading at 1,629 after settling last Friday at 1,600 continuing its bullish momentum hitting an all-time high once again as strong demand continues to fuel prices higher.

I was looking at a bullish position a couple of days back but was not executed as I am currently sitting on the sidelines, however, if you are long a futures contract I would stay long as I think higher prices are ahead and if you've been following any of my previous blogs you understand I think prices could hit the 2,000 level. Palladium is trading far above its 20 and 100-day moving average as this is the strongest precious metal as I do not have any recommendations out of this sector at the current time.

If you are long a futures contract I would continue to place the stop loss under the 10-day low standing at 1,518 as an exit strategy, however, the chart structure will improve next weeks trade therefore the monetary risk will be lowered as I see no reason to be short as that would be counter-trend trading which is very dangerous over the course of time.

TREND: HIGHER
CHART STRUCTURE: POOR
VOLATILITY: HIGH

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Weekly Futures Recap With Mike Seery

Silver Futures

Silver futures in the December contract ended the week on a sour note down $0.42 at 17.75 after settling last Friday at 18.11 an ounce as prices are near a 3 week low. I have been recommending a bullish position over the last several months from the 14.93 level originally in the September contract as it is time to exit and move on as prices are right near a 3 week low as the trend in the short-term has changed.

Silver futures are trading below their 20-day but still above their 100-day moving average as all the interest has come back into the U.S stock market which is right near another all-time high as money flows are entering equities and out of the metals.

If you are a longer-term investor, I would still hold on to silver as I still believe prices are cheap historically speaking as this is just the pullback as I will not take a short position as I think the downside is minimal.

I do not have any recommendations in the precious metal as I think this is a pause as we will probably witness a consolidation over the next couple of weeks, but I still believe prices will head into the $20 range come year-end, but it is time to move on and exit.

TREND: MIXED
CHART STRUCTURE: POOR
VOLATILITY: HIGH

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Weekly Futures Recap With Mike Seery

Gold Futures

Gold futures in the December contract is currently trading at 1,523 an ounce after settling last Friday in New York at 1,529 down slightly for the trading week experiencing high volatility as I am currently not involved, but I do have a bullish silver position which has been mirroring gold to the upside.

If you are long a futures contract, I would place the stop loss under the 2 week low standing at 1,503, however for the bullish momentum to continue prices have to break the September 4th high of 1,566 in my opinion.

Trade talks between the United States and China will begin once again in October as that put pressure on gold prices in yesterday's trade also sending the stock market sharply higher as money flows entered equities and out of the precious metals which have been used as a flight to safety.

In my opinion, I still believe gold and silver will continue their bullish trends as negative interest rates around the world will continue to support the precious metals sector as interest rates are going to remain extremely low for a long time as I see no reason to be short gold.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

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Weekly Futures Recap With Mike Seery

Gold Futures

Gold futures in the December contract settled last Friday in New York at 1,523 while currently trading at 1,537 up nearly $28 for the week ending on a positive note all because it certainly looks like a trade war with China is going to escalate.

I am currently not involved in gold, but I do think higher prices are ahead and if you are long a futures contract continue to place the stop loss under the 2 week low standing at 1,488 as an exit strategy as I still think prices break the 1,600 level possibly in next week's trade. I have a bullish silver trade which continues to move higher weekly as I see no reason to be short the precious metals as the U.S. stock market is down another 450 points as the commodity markets remain weak across the board especially the agricultural sector.

Volatility in gold is exceptionally high, and that will continue for the rest of 2019 as prices are still trading above their 20 and 100-day moving average, however for the bullish momentum to continue prices have to break the April 13th contract high of 1,546, and I think that situation is going to occur so stay long if you are involved as I see no reason to take profits.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

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