The gold market gets more press than silver, but the silver futures chart looks better than gold’s today.
The daily chart for March Silver futures is below. I’ve been watching two resistance points; the Dec. 16 high at 17.810 and Fibonacci retracement resistance at 18.133. 18.133 is a 50% retracement of the December selloff in silver. I don’t ascribe mystical powers to Fib stuff, but I find the 50% retracement level to be a good gauge of when a correction turns into a trend change.
click to enlarge
So silver may be turning higher; what next? By the Taylor count, we’re likely to see a Sell Short day after what will be three big days of rallies. I would see a potential scenario of a down day tomorrow (close lower than the open) to set up a Buy day for Friday. The first two support points would be the Fib level at 18.133 and the 17.810 high. Contact me tomorrow for additional levels.
As for gold, Feb Gold futures have resistance at 1142.90 (12/17 high); the equivalent Fib retracement level for Feb gold is at 1151.40. I’ve always been a proponent of buying the strongest market in a sector, rather than buying the “cheap” market, looking for it to “catch up”. In this light, I’d currently prefer silver to gold.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
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