May Silver Futures Hit $30? – INO.com Dealer’s Weblog

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Silver Futures

Silver futures within the July contract settled final Friday in New York at 25.87 an oz whereas presently buying and selling at 27.48 up over $0.60 for the week, persevering with its bullish momentum as costs are close to a 2 half of month excessive.

I’ve been recommending a bullish place from across the 25.85 degree, and in case you took that commerce, proceed to position the cease loss below the two-week low standing at 25.74 on a closing foundation solely as the right exit technique. The following main degree of resistance stands on the 28.00 / 28.25 degree as that might be damaged in subsequent week’s commerce, and if that does happen, I believe we are going to take a look at the 30 degree quickly.

I even have a bullish platinum advice, and I believe gold and copper will proceed to maneuver larger as I see no cause to be quick this sector. The united statesdollar has hit a two-month low this week as that may be a bullish issue in the direction of silver coupled with the truth that the 10-year word has hit a two-month low in yield at 1.53% as this market basically and technically talking has every thing going for it, so keep lengthy.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Copper Futures

Copper futures within the July contract is buying and selling larger for the third consecutive session, up one other 1260 factors or 2.75% at 4.7285 a pound, hitting an all-time excessive this week as this gravy practice continues its bullish momentum.

I am not concerned, however when you have been following my earlier blogs, you perceive that I have been bullish copper for fairly a while as I assumed the 4.00 degree could be damaged months in the past. It did happen, and now I believe the 5.00 degree is within the card as this market is extremely robust as I see completely no cause to choose a high and promote.

Copper costs are buying and selling far above their 20 and 100-day shifting common. This pattern is extremely robust to the upside as there are large shortages because of the Coronavirus scenario during the last 12 months or so. It’s affecting many alternative sectors, together with copper. The volatility stays excessive, and that scenario shouldn’t be going to vary. It would turn into much more violent, particularly if we cross the 5.00 degree within the coming weeks forward, as this most likely is the strongest pattern out of all commodities on the present time. In case you are lengthy a futures contract, proceed to position the cease loss below the 10-day low standing at 4.41 on a closing foundation as the right exit technique.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Platinum Futures

Platinum futures within the July contract is presently buying and selling at 1,254 an oz after settling final Friday in New York at 1,205, up about $50 for the week as costs are proper close to a Three month excessive.

I’m now recommending a bullish place whereas putting the cease loss below the March fifth low of 1,115 as the chance is round $7,000 per contract plus slippage and fee. Nevertheless, the chart construction will enhance later subsequent week; subsequently, the financial danger will probably be diminished tremendously.

Platinum costs look to maneuver a lot larger, for my part, as traditionally talking, they nonetheless look low cost. The complete valuable metals sector appears to proceed one other leg larger within the coming months forward, and I see no cause to be quick something.

I even have a bullish silver advice that continues to maneuver larger as costs are buying and selling above their 20 and 100-day shifting common, telling you that the pattern is to the upside. This 12 months has a number of the strongest traits I’ve skilled in fairly a while.

The following main degree of resistance stands on the 1,275 degree. If that’s damaged then, costs may commerce up for the 1,500 space within the coming months forward as there a major room to run, particularly if the U.S. greenback continues its bearish momentum coupled with the truth that rates of interest stay traditionally low because the 10-year word is yielding 1.50%.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Pure Fuel Futures

Pure gasoline futures within the June contract is presently buying and selling decrease by 2 factors at 2.91 after settling final Friday in New York at 2.93, mainly unchanged for the week having bother breaking the essential 3.00 degree for my part.

I’ve been recommending a bullish place from across the 2.66 degree and in case you took that commerce, proceed to position the cease loss on a closing foundation solely below the 10-day low of two.73 as an exit technique.

The chart construction is excellent; subsequently, the chance/reward stays in your favor. Nevertheless, for the bullish momentum to proceed, costs have to interrupt the three.00 space, after which I will probably be taking a look at including extra contracts to the upside as that might occur in subsequent week’s commerce, so be nimble and look to be a purchaser. The complete power sector continues its bullish momentum, and I do not suppose that scenario goes to finish anytime quickly.

I believe crude oil costs will go considerably larger all through 2021 because of the Biden administration’s conflict towards fossil fuels. I see no cause to quick any commodity. Basically talking, costs moved decrease on forecasts for above-average temperatures to return to the U.S. after the center of this month. Maxar on Thursday mentioned that below-normal temperatures are anticipated within the jap half of the U.S., with above-normal temperatures for the West and Southwest from Might 11-15. Nevertheless, above-normal temperatures are then anticipated for a lot of the U.S. from Might 16-20.

Weak point in home demand can be bearish for costs as nat-gas demand within the decrease 48 U.S. states on Thursday fell -10% y/y to 56.6 bcf.

TREND: HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: HIGH

Wheat Futures

Wheat futures within the July contract is buying and selling larger by 2 cents at 7.54 a bushel after settling final Friday in Chicago at 7.34, up about $0.20 for the week as costs have now hit an Eight 12 months excessive.

I’ve been recommending a bullish place from the 6.65 degree and in case you took that commerce, proceed to position the cease loss below the 10-day low on a closing foundation solely at 7.11 as the right exit technique. The chart construction won’t enhance for an additional eight buying and selling periods; subsequently, you’ll have to settle for financial danger. The volatility continues to escalate the upper the value goes, and that scenario won’t finish for months to come back.

Wheat costs are buying and selling far above their 20 and 100-day shifting common because the pattern is robust to the upside as the entire grain market continues its bullish momentum this week because it doesn’t appear to be a high has been shaped at this level. The following main degree of resistance stands on the 8.00 space, and if that’s damaged, you would see a major rally within the coming weeks forward, so keep lengthy as I see no cause to be quick wheat or any commodity or any asset class at the moment.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Rice Futures

Rice futures within the July contract is presently buying and selling at 14.42 after settling final Friday in Chicago at 13.69 as costs have hit a contemporary one 12 months excessive, persevering with its bullish momentum. I nonetheless suppose it nonetheless appears low cost particularly in comparison with the remainder of the commodity markets, together with corn and soybeans.

I’ve been recommending a bullish place from across the 13.60 degree. In case you took that commerce, the cease loss has now been raised to 13.38 as an exit technique on a closing foundation solely because the chart construction is excellent; subsequently, the chance/reward stays in your favor.

Rice costs are buying and selling above their 20 and 100-day shifting common because the pattern stays robust to the upside. The following main degree of resistance is standing on the 15.00 space, which might be touched subsequent week as there might be important room to run on this commodity within the coming months forward. Keep in mind, rice is essentially the most eaten commodity globally and may expertise great value swings resulting from drought or flood or, on this case, robust demand, so keep lengthy as I see no cause to be a vendor.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Espresso Futures

Espresso futures within the July contract settled this Friday in New York at 152.90 a pound as costs are hovering proper close to a Four half of 12 months excessive.

I’ve been recommending a bullish place from across the 126 degree, which on the time was a counter-trend commerce that has labored out properly, and in case you took that advice, proceed to position the stop-loss below the 10-day low standing at 25.74. The volatility is beginning to choose up tremendously the upper the value goes, and I nonetheless suppose there’s an opportunity that costs may hit the 200 degree, particularly if adversarial climate circumstances persist, as I witnessed in 2014.

I’ve many bullish suggestions within the delicate commodity sector, and I see no cause to be quick, so proceed to be a purchaser and reap the benefits of additional weak point as there’s room to run. Espresso noticed power after the Worldwide Espresso Group (ICO) lower its 2020/21 international espresso manufacturing estimate to 169.633 mln luggage from a earlier estimate of 171.896 mln luggage and lower its international 2020/21 espresso surplus estimate to +3.286 mln luggage from a previous forecast of +5.258 mln luggage.

Fund shopping for can be propelling espresso costs larger on concern extreme dryness in Brazil might curb espresso yields. Somar Meteorologia reported Monday that rain final week in Minas Gerais, Brazil’s largest arabica rising area, measured 0.2 mm, or solely 2% of the historic common. That measurable rain is unlikely by way of Might 25.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Sugar Futures

Sugar futures within the July contract settled final Friday in New York at 16.98 a pound whereas presently buying and selling at 17.53, hitting a contemporary contract excessive this week, persevering with its bullish momentum. The complete delicate commodity sector stays in a longer-term secular bullish pattern.

I’ve been recommending a bullish place from across the 17.10 degree. In case you took that commerce, proceed to position the cease loss below the 16.93 as an exit technique on a closing foundation solely, which is a crucial facet to recollect. Sugar costs are buying and selling far above their 20 and 100-day shifting common because the pattern is to the upside as this commodity continues to trip the coattails of crude oil larger weekly. I see no cause to be quick. I will probably be taking a look at including extra contracts as soon as the chance/reward turns into extra in your favor, presumably subsequent week, as I nonetheless suppose the $20 degree will probably be breached.

Basically talking, costs are seeing assist from the dry circumstances in Brazil, which is able to curb sugar yields. Maxar mentioned that Brazil’s Middle-South, the nation’s largest sugar-growing area, is anticipated to see dry climate by way of Might 9 with restricted rains over the following ten days. Final Thursday, Czarnikow mentioned rain in Brazil’s Middle-South area from October through March was 36% beneath common, the largest drought in additional than a decade.

Sao Paulo, which makes up 68% of Brazil’s complete cane manufacturing, has seen the driest climate in 20 years in 5 of the six months by way of March, and yield losses might be as excessive as 20% in some areas, in line with Somar. Additionally, Wilmar Worldwide, on April 19, mentioned that due to extended dryness, Brazil’s 2021/22 cane crop “might barely attain” 530 MMT, down -12% y/y and the bottom in a decade.

TREND: LOWER
CHART STRUCTURE: SOLID
VOLATILITY: LOWH

Orange Juice Futures

Orange juice futures within the July contract completed larger by 235 factors at 113.35, breaking a nine-day shedding streak earlier this week as this by far is the weakest member out of the delicate commodity sector.

I’ve been recommending a bullish place during the last month or so from across the 110 degree, and in case you took that commerce, proceed to position the cease loss at 99.00 on a closing foundation solely as the right exit technique.

There’s little or no contemporary basic information to dictate short-term value motion as this strictly has been a technical commerce. Seasonably talking, it is a very quiet time for orange juice costs. On the present time, I even have bullish suggestions in espresso, cotton, cocoa, and sugar as most of this sector is at multi-year highs, however orange juice has been unable to affix the celebration.

Juice costs are buying and selling beneath their 20 and 100-day shifting common because the pattern stays to the draw back whereas additionally remaining a counter-trend advice. Nonetheless, I imagine the draw back may be very restricted as the chance/reward stays in your favor to the upside to remain lengthy.

TREND: LOWER
CHART STRUCTURE: IMPROVING
VOLATILITY: LOW

What do I imply after I speak about chart construction and why do I believe it’s so necessary when deciding to enter or exit a commerce? I outline chart construction as a gradual grinding up or down pattern with low volatility and no chart gaps. Most of the nice traits that develop have superb chart construction with many low share day by day strikes over a course of a minimum of Four weeks thus permitting you to enter a market permitting you to position a cease loss comparatively shut resulting from small strikes thus lowering danger. Charts which have violent up and down swings aren’t thought of to have strong chart construction as I like to position my stops at 10-day highs or 10-day lows and if the charts have a decent sample that may permit the dealer to reduce danger which is what buying and selling is all about and if the chart has massive swings your cease will probably be additional away permitting the potential of bigger financial loss.

In case you are on the lookout for a futures dealer be happy to contact Michael Seery at 630-408-3325 and he will probably be more than pleased that can assist you along with your buying and selling or go to www.seeryfutures.com

Michael Seery, President
Seery Futures
Facebook.com/seeryfutures
Twitter–@seeryfutures
Cellphone #: 630-408-3325
[email protected]

There’s a substantial danger of loss in futures, futures possibility and foreign currency trading. Moreover, Seery Futures shouldn’t be liable for the accuracy of the knowledge contained on linked websites. Buying and selling futures and choices is Not applicable for each investor. My opinion on this weblog are for common info use solely and aren’t meant as a proposal or solicitation with respect to the acquisition or sale of any futures or possibility contracts.

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