The price of SILVER continues to fall as the USD strengthens, however, seasonally on average Silver has one of its best months. Will the price turn around in line with its seasonal average or not?
Watch the video to learn…
The price of Silver is one to watch through the month of July as it usually outperforms most markets throughout this period. The price of the commodity has fallen in recent months due to the strength of the USD which looks unlikely to come to an end anytime soon. However, just because the USD is strong fundamentally doesn’t mean we won’t see pauses or pullbacks on the currency offering opportunities for commodities to begin to find support in key areas.
The commitment of trader reports highlights a potential long position building from the commercials on the commodity. Long contracts are increasing and short contracts are decreasing showing the commercials are happy to buy at current prices. This could soon lead to a turn around in the market if the long contracts can continue to grow.
The monthly time frame shows the price is in a strong downward trend after breaking out of the range lows around $22.00. The next support zone for the commodity is $18.50 where the price paused for a month before moving higher in the past. This area could be a sticking point for the price and we could see buyers step in around this level.
If buyers do step in at this point we want to be looking for reversal patterns in the market for opportunities in line with the seasonal bias. If the price can form a double bottom pattern we could be looking at an opportunity to long at the second test of the lows as this would show that price no longer wants to move lower. If the price rallies in this area we could see the price retest the range lows.
Did you see our recent CRUDE OIL video? You can see it here.
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