1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Friday March 27, 2015
For 2015 I would like to wish all of you discipline and patience in your trading!
I just wrote this one for forexmagnates.com yesterday and wanted to share with you.
Silver Futures at the Crossroads
After a long period of declining prices we finally saw a significant bounce on silver futures over these past couple of weeks. The question I ask myself is: Is this a good place to sell, is this just a bounce/short covering and the trend lower will resume?
Is this rally a beginning of a breakout to the upside and trend reversal?
Only time will provide the correct answer but until then I think the following two strategies are worth looking at:
1. Sell futures right around the $17 level and place a stop on the short along with another stop to go long if market breaks above $17.30 (see chart below).
2. Sell call option premium on rallies and sell put option premium on sell offs as we take the assumption that the market will be trading between $16 and $18 for the next few weeks. Selling premium is a dangerous strategy with unlimited risk.
As I don’t see any major changes in the fundamental picture for silver, I like to use the chart and technical studies in an attempt to come up with a good risk-reward trade.