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More Run in the Silver Bull

More Run in the Silver Bull

Posted August 10, 2020 at 10:40 am
Terry Roggensack
The Hightower Report

The extremely overbought technical condition and the key reversal on Friday in December Silver make it tempting to turn negative on that market. But as we have pointed out in recent reports, there may be plenty of more gas in that tank to fuel a continuation of the bull trend.

Weekly Silver futures

On the weekly nearby chart, one thing that jumps out is that the market has not even retraced 50% of its decline from the all-time high to the March low, which comes in at 30.62. We cannot rule an eventual test of key resistance at 35.08.

Near-term resistance for December Silver is now at 29.31, with support at 25.56–25.29 and then 23.78. One reason to suspect that the rally may not be complete is that open interest has not even made it back to where it was in March. It has recently reached 207,490 contracts, whereas in August 2018 it climbed to 243,195. Furthermore, the managed money net long position is only 32,162 contracts, compared to 98,845 in April 2017.

Silver COT - Futures and Options

Originally Published on August 7, 2020

This report includes information from sources believed to be reliable, but no independent verification has been made, and we do not guarantee its accuracy or completeness. Opinions expressed are subject to change without notice. This report should not be construed as a request to engage in any transaction involving the purchase or sale of a futures contract and/or commodity option thereon. The risk of loss in trading futures contracts or commodity options can be substantial, and investors should carefully consider the inherent risks of such an investment in light of their financial condition. Any reproduction or retransmission of this report without the expressed written consent of The Hightower Report is strictly prohibited. The data contained herein is subject to revision; independent verification is recommended. Any third party opinions regarding this report are not necessarily those of the authors. Due to the volatile nature of futures and options markets, the information contained herein may be outdated upon its release.

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This report includes information from sources believed to be reliable, but no independent verification has been made, and we do not guarantee its accuracy or completeness. Opinions expressed are subject to change without notice. This report should not be construed as a request to engage in any transaction involving the purchase or sale of a futures contract and/or commodity option thereon. The risk of loss in trading futures contracts or commodity options can be substantial, and investors should carefully consider the inherent risks of such an investment in light of their financial condition. Any reproduction or retransmission of this report without the expressed written consent of The Hightower Report is strictly prohibited. The data contained herein is subject to revision; independent verification is recommended. Any third party opinions regarding this report are not necessarily those of the authors. Due to the volatile nature of futures and options markets, the information contained herein may be outdated upon its release.

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