Silver futures in the July contract settled last Friday in New York at 15.77 while currently trading at a 16.92 an ounce ending the week on a positive note up over $0.75 as prices have now hit a 2 month high.
I've recommended a bullish position from around the 16.10 level, and if you took that trade, continue to place the stop loss under the 10-day low, which stands at 14.76 as an exit strategy. The chart structure will improve in next week's trade as the monetary risk will also be reduced.
Silver prices are now trading above their 20 and 100-day moving average for the 1st time in 3 months. I do believe a true breakout has occurred as it would not surprise me if prices test the contract high of 19.07, which was hit on February 24th in the coming weeks ahead.
The U.S. equity market is starting to look a little vulnerable as we had one of the worst weeks in quite some time. Money flows are entering the precious metals which look very strong, and I still think silver has room to run. Continue to play this to the upside, and if you are not involved, wait for some price retracement before entering.
CHART STRUCTURE: IMPROVING
Mexican Peso Futures
The Mexican Peso in the June contract settled last Friday at 4189 while currently trading at 4161 down slightly for the week still stuck in a very tight 8-week consolidation pattern looking to break out to the upside in my opinion. I will be recommending a bullish position if prices close above the 42.21 level while then placing the stop loss at 3918 as the risk would be around $1,600 per contract plus slippage and commission. Continue reading "Silver Futures Looking To Test Highs"