July silver futures (SIK25) present a buying opportunity on more price strength.
See on the daily bar chart for July silver futures that prices have made a solid rebound from last week’s low, which has produced a technically bullish selling exhaustion tail, suggesting the bears ran out of gas and that a market bottom is in place.
Fundamentally, persistently keener risk aversion in the general marketplace is bullish for the safe-haven silver market. Importantly, the fact that U.S. Treasurys, normally safe-haven assets, are selling off at mid-week, hints that even more safe-haven demand flows will move to the precious metals markets, including silver. Global stock markets are roiled amid a U.S.-China trade war that could produce a global economic recession, also suggesting more sustained safe-haven demand for precious metals.
A move in July silver futures above chart resistance at this week’s high of $31.045 would become a value- buying opportunity. The upside price objective would be $36.00, or above. Technical support, for which to place a protective sell stop just below, is located at $29.35.
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.
