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Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
The chart above is a daily Comex / Globex March Silver with 50 day moving average and fib retracement. Chart by CQG.
This morning we sent a tweet that said March Silver futures had reached the .500 Fibonacci retracement level and that our underlying technical indicators suggested to us that the market might find resistance there. It did not.
The .500 level was 1813.25. The next important retracement level is the .618 Fib which comes to 1845.523.
The U.S. Dollar remains a factor as well as the stock indices. The intermediate term underlying technical condition appears quite overbought. This condition, however, does not show up at the daily level. In fact, although not completely positive, they are nearing a cross over into what we consider a positive position.
The longer term basis weekly data actually shows our underlying technicals as being in negative territory. This would help support the view that this upward price movement is corrective in nature.
Good trading to all
Jeff
CB&S
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