The daily bar chart for May silver futures (SIK25) shows that prices are trending up and have just hit a 4.5-month high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is moving into a bullish posture amid a bullish line crossover.
My bias is that silver will continue to be supported by safe-haven demand amid a highly uncertain global economic environment. Also, the fact that gold prices (GCK25) are at a record high, while silver prices are still well below their own record highs, suggests silver has more room to run on the upside.
A move in May silver prices above chart resistance at last week’s high of $34.86 would give the bulls fresh power and it would also become a buying opportunity. The upside price objective would be $39.00 and above. Technical support, for which to place a protective sell stop just below, is located at $33.00.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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