SILVER futures positions signal about drop

By | May 6, 2015

In the coming days, the silver futures will remain under the influence of statistics from the US. The last meeting of the US Federal Reserve did not add clarity on the timing of the possible beginning of a rate hike. Clearly only one thing that the US regulator will do it when the economy is firmly stand on the road to recovery. On the eve of a key report week, the US labor market, the state of which the Fed puts almost at the center of all attention is concentrated on preliminary indicators that will predict what will be the report NFP. Today it is a report on private sector employment from ADP.

If he is strong enough, then, coupled with yesterday’s increase in the employment component in the index ISM (56,7 against 56.6 a month earlier), it can cause an increase in demand for the dollar, as the market begins to price in a strong employment data. Against this background, possible drop silver. In favor of reduction of quotations of precious metal signals and dynamics of futures positions. Net cash flow for silver futures continues to decline. It happens due to faster growth in the number of short positions, which is not surprising, given the reports of rising stocks of silver in China in the 1st quarter to 341.5 tonnes from 122.8 tonnes in late 2014.

silver chart
Silver chart

Trading analytics

Support and resistance levels  
Support 1    16,240
Support 2    16,000
Current price:   16,439
Resistance 1    16,500
Resistance 2    16,730

Silver futures (XAG/USD)   –   sell silver  –  In the breakdown of price support level 16,240 considering the sale for the purpose at the level of 16,000 and a further 15.759. Stop-Loss = 16,500

Warning: Profitability in the past does not mean profitability in the future. Any projections are for informational purposes and do not guarantee the results obtained.

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