Can Safe-Haven Demand Take Silver to New Highs Here?
See on the daily bar chart for September silver futures (SIU25) that prices are trending up and are not far below this week’s 13-year high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is also in a bullish mode as the red MACD line is above the blue trigger line and both lines have been trending up. Bulls have the solid near-term technical advantage.
Fundamentally, geopolitical tensions are driving the show following Israeli attacks on Iran that Israel says will be ongoing. This has already pushed the gold (GCQ25) market solidly higher late this week and I’m somewhat surprised silver has not followed. However, my bias is that silver will see significant price appreciation in the near term on fresh safe-haven demand.
A move in September silver futures prices above chart resistance at this week’s high of $37.35 would become a buying opportunity. The upside price objective would be $42.00, or above. Technical support, for which to place a protective sell stop just below, is located at $35.00.
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.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.