Silver Prices Higher 4th Day In A RowSilver futures in the March contract is trading higher for the 4th consecutive session up 27 cents or 1.67% at 17.13 an ounce
As the whole precious metal sector has caught fire over the last several days and looks to move even higher in my opinion. I will be recommending a bullish position on Silver, if prices close above the December 4th high of 17.41 while then placing the stop loss under the 10-day low standing at 16.56 as the risk would be around $1,700 per 2 mini contracts plus slippage & commission.
Fundamentally speaking the precious metals settled higher Wednesday after the Fed signaled it will keep interest rates steady for the foreseeable future thus reducing concerns about a rate hike.
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The FOMC voted 10-0, the first unanimous decision since May, to keep the fed funds target range unchanged at 1.50%-1.75% and said interest rates are “appropriate” to support growth and jobs.
Silver prices are now trading above their 20 day moving average but still below their 100 day as the trend as mixed as we have been consolidating over the last 5 weeks, however I do think the downside is limited so look to play this to the upside as the volatility is starting to come to life again which is a terrific thing to see.
CHART STRUCTURE: IMPROVING
This article was written by Michael Seery (CTA—COMMODITY TRADING ADVISOR) www.seeryfutures.com