Assessing the Silver Market: Opportunitie and Risk as Q4 Begins
The Silver market is a mixed bag, and there are several ways traders are looking at this market. The precious metals complex has been under recent pressure with the rising dollar and rising treasury yields, and Silver is nearing the make it or break it point with some of the weakness we have seen this week.
Good News:
With the negative price action the market has seen, there is still some good news for the bulls. For one, Silver is an industrial metal, unlike Gold. This offers more opportunity for the market outside of what is happening with the dollar and yields. Along with that, even when we have seen the market break below the 23.06 retracement level, the trendline support going back to the lows from August of 2022 have held strong.
Bad News:
Even if you are bullish, it is essential to assess the downside risk before entering a market. The trendline support is going to be the key support level that needs to hold for the market to have any chance of a sustained rally. A break and a close below this level could spark additional selling pressure, and there is a lot of room to the downside for the market to try and find support.
As we are looing to head into Q4 and have end of month and end of quarter today, there should be expected volatility in Silver and the other macro markets as well, but keep an eye on this trendline support as we head into what hopes to be a strong Q4!
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Good News:
With the negative price action the market has seen, there is still some good news for the bulls. For one, Silver is an industrial metal, unlike Gold. This offers more opportunity for the market outside of what is happening with the dollar and yields. Along with that, even when we have seen the market break below the 23.06 retracement level, the trendline support going back to the lows from August of 2022 have held strong.
Bad News:
Even if you are bullish, it is essential to assess the downside risk before entering a market. The trendline support is going to be the key support level that needs to hold for the market to have any chance of a sustained rally. A break and a close below this level could spark additional selling pressure, and there is a lot of room to the downside for the market to try and find support.
As we are looing to head into Q4 and have end of month and end of quarter today, there should be expected volatility in Silver and the other macro markets as well, but keep an eye on this trendline support as we head into what hopes to be a strong Q4!
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.