SILVER futures: the dynamics of futures positions indicating the presence of the potential to reduce

By | April 20, 2015

Despite the relatively high risks geopolitical precious metals remain under pressure. One of the main factors that have a negative impact on silver futures, is the strengthening of the dollar, which makes assets denominated in it cheaper. In addition, there is the growth of silver reserves in the Shanghai Stock Exchange against the closure of the weaknesses in the customs legislation of China.

As of April 9, figure jumped to 341.5 tonnes from 122.8 tonnes in the same period last year. This growth indicates a fairly low level of industrial demand. If we pay attention to the dynamics of futures positions, and they signal in favor of further falls. Net cash flow of silver fell by a decline in the number of long and short positions of growth (which increased significantly in the last week).

silver futures chart
Silver futures chart

Trading analytics

Support and resistance levels  
Support 1    16,000
Support 2    15,759
Current price:   16,046
Resistance 1    16,240
Resistance 2    16,500

SILVER futures (XAG/USD)   –   sell XAG/USD   –   In the breakdown of the prices the level of support considering selling 16,000 for the purpose at the level of 15.759. Stop-Loss = 16,240Warning: Profitability in the past does not mean profitability in the future. Any projections are for informational purposes only and do not guarantee the results obtained.

Share on FacebookShare on Google+Tweet about this on Twitter

Leave a Reply

Your email address will not be published. Required fields are marked *