Silver Futures Set to Rally

Commitment of Traders Report Points to Higher Silver Prices

Commercial traders building position for silver futures rally.

 

June 26, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

The commercial traders have nailed the silver market for the last few months. They were the heaviest sellers at the March highs. They sold more than 10,000 contracts through the month of February.

They’ve also been the heaviest buyers through the May – June decline, adding 7,000 contracts in the last month. These additions have pushed their position just above their buying levels in early January.

Their buying has also led to a technical divergence in the ARSI momentum indicator. We can see that the market made a new low on Friday’s trade, down to $26.57. However, the ARSI’s significantly higher reading in light of the market’s new lows provides evidence of a turnaround in the market, rather than continued downside.

We will be buying September silver futures and placing a protective sell stop at the swing low of $26.57.
If you would like to trade commodities with us, please go to Commodity & Derivative Advisors.

 

COT Signals

 

ANDREW WALDOCK

866-990-0777

This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.