7.5yr RSI trendline observations (monthly)As illustrated via the solid blue RSI trendline, monthly futures have been accumulating pressure for about 7.5yrs. In our view, a monthly close above $16.15 would result in large capital inflows not seen since 2003. Risk associated with entering at present levels may be partially mitigated with a timely exit if weekly values close below $14.75. From a purely geopolitical perspective (gold/silver ratio, price history and mining supply conditions aside), silver securities offer credible hedge value.
Silverfutures
High Probability Intraday Trade Setup for Silver FutureThe following are trades setup ideas in 15 mins chart for Silver Futures .
There are 2 distinctive dotted lines labelled as
1. AI's Intraday Resistance line
2. AI's Intraday Support line
Short Play Probability Setup
If price is below Pivot Point line and price action closed below the AI's Intraday Support Line, the idea is to short and take profit at Pivot Point S1 or S2 . Traders may choose to take partial profit at Pivot Point S1 (instead of closing entire position) and depending if bearish sentiment continues, remaining position could be closed when price approaches below between Pivot point S1 and S2 region. This is dependent on his/her position sizing to lock profits and to maintain an existing open position as risk-free.
Instead of relying on 100% discretionary (human) trading, the robots will provide trade execution plan and it is entirely up to the human trader's decision to follow.
While it is optional, it is a good practice, in general, to trade this product during the US Future Market Session when there are higher volume and liquidity.
GOLD OCTOBER 2018 FUTURESCompared with gold OCT 2018 futures contracts.
As the SP500 0.38% has dived over the past two weeks, gold futures 0.18% have finally started to incline after long and heavy tailwinds kept them from gaining traction. As we move into a more inflationary environment and the market outlook looks more bearish , gold -0.05% will continue to provide be a classic hedge and we'll see futures rise. Silver futures 0.60% are also an excellent hedge that has seen more volatility and is nicely poised for bullish ETF option plays on silver-tracking ETF's, for example. Now may be a good time to add gold -0.05% and/or silver -0.07% to your portfolio, either with futures or ETFs.
Silver Futures Poised to Trend UpAfter breaching it's 200 MA in early April, Silver Futures have gone from 18.10 to 18.24. Looking at the weekly charts for SI1!, you can see a head and shoulders pattern in the chart. Now, a key resistance line for this price is around 18.35 - 18.40. If it can break this, it gives even more weight to the probability of a longer term bullish trend.
In terms of global macro, with rising interest rates, and the spread between risky and non risky assets shrinking, silver could see a volume pick up as an alternative investment, being that it led as the top investment for Q1 2017.
Finally, look at the crossover of the 200 day MA with the 50 on the weekly chart. If the 200 MA crosses over the 50 MA in a bullish manner, it presents even more weight to my bullish thesis.
All the best,
RC




