December silver futures (SIZ25) present a selling opportunity on more price weakness.
See on the daily bar chart for December silver futures that recent price action has formed a bear flag pattern. The recent higher daily price volatility at higher levels is also a warning signal that a market top is in place. See too, at the bottom of the chart that the moving average convergence divergence indicator is in a bearish posture, as the blue MACD line is below the red trigger line and both lines are trending down.
Fundamentally, safe-haven silver is being pressured, and will likely continue to be pressured, by keener risk appetite in the general marketplace, evidenced by the U.S. stock indexes today hitting record highs amid easing U.S.-China trade tensions.
A move in December CME micro silver futures below chart support at last week’s low of $46.82 would become a selling opportunity. The downside price objective would be $40.00, or below. Technical resistance, for which to place a protective buy stop just above, is located at $50.00.
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.
