It's time for our weekly commodity futures recap with
our trading partner Mike Seery. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets. And 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.
Gold futures in the April contract are up $13 this afternoon in New York currently trading at $1,233 an ounce after settling last Friday around $1,235 basically unchanged for the trading week still right near 4 week lows is I’m recommending investors to sit on the sidelines in this market as the trend is currently mixed. Gold futures are trading below their 20 but just barely above their 100 day moving average as the S&P 500 had a terrific week as the Dow Jones cracked 18,000 to the upside as that’s where the interest lies currently as the next major level of support is between $1,180 – $1,220 but sit on the sidelines as the chart structure is absolutely terrible at the current time.
If you have followed any of my previous blogs I constantly stress the fact to avoid markets that are choppy as I think the success rate is very low unless you are some type of day trader but I hold positions overnight so look for another market that is beginning to trend and keep an eye on gold as I don’t think we will be trading this market for quite some time. The U.S dollar is still right near 11 year high and that’s always pessimistic commodities in general especially the precious metals but at the current time I just don’t have an opinion on this market as I think we will chop around in the short term.
Trend: Mixed
Chart Structure: Poor
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Silver futures in the March contract are up $.55 this afternoon still trading below their 20 but above their 100 day moving average telling you this trend is mixed as I’m also advising traders to sit on the sidelines in this market as we were stopped out at the 2 week low around 16.71 last Friday as this market remains extremely volatile but prices continue to move sideways. Silver prices settled last Friday at 16.70 currently trading at 17.35 up about $.65 an impressive week in my opinion as many of the commodity markets are sharply higher today due to the fact that crude oil is up another $2 which is beneficial and supportive to many commodity prices thinking that the giant bear markets might be finished.
As a trader I’m always looking for a breakout but at the current time silver looks like it’s in a bottoming pattern in my opinion with no breakout occurring as the real level that you want to look at is 18.50 if prices break above that level I would be recommending a bullish position but at the current time the chart structure is poor so look elsewhere. The one bullish fundamental reason for silver to move higher is the fact that it’s used in electronic components and that business is going to be here for a long time to come so theirs actual demand for silver unlike gold which is just primary used in jewelry as the electronic market should get larger and grow exponentially over the next 10/20 years in my opinion.
Trend: Mixed
Chart structure: Poor
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