Trade Alert, Silver Showing Short Term Bullish Trend with Long Term Support
** Trade Alert **
With a long term support at $16.00 and a short term uptrend there is some opportunity to make a trade on silver. Silver traded above its 10 and 20 day moving averages in today’s session, indicating a short term bullish trend, and a break out above its 50 and 200 day moving averages, both closer to the $17 mark, could provide decent upside. For a savvy option trader, go long May Silver $17.00 call, short May Silver $17.50 call, and short May Silver $15.75 put collecting a premium of 2 cents with an objective of +50 cents and risk a total of 10 cents from entry.
May silver futures settled up to $16.608 a troy ounce while the other metals had similar gains. Gold settled with a slight gain today at $1,324.00, April platinum futures rose to $964.20 a troy ounce, May copper futures settled up to $3.136 per pound, and June Palladium futures fell to $986.85 a troy ounce.
Following are your May silver pivot points. For May silver, an open in the next session above the pivot of $16.499 would show near term resistance at $16.669 while a breakout above this level would see longer term resistance at $16.729. An open below the pivot would have near term support down at $16.439, and a sell off below this would show longer term support at $16.269.
Following are your April gold pivot points. For April gold, an open in the next session above the pivot of $1,320.00 would show near term resistance at $1,326.80 while a breakout above this level would see longer term resistance at $1,329.60. An open below the pivot would have near term support down at $1,317.20, and a sell off below this would show longer term support at $1,310.40.
If futures interest you or to discuss trade ideas, please give me a call.
Bullion on Bullion.
** Call me for a complimentary consultation on any of your future and futures needs **
Michael Bullion, CAIA
Senior Technical Analyst
Walsh Trading, Inc.
Direct: 312.985.0156
888.391.7894
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RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.