Getting Caught in the Forest - Gold & Silver
Gold (June) / Silver (July)
Gold, yesterday’s close: Settled at 2331.2, up 22.6
Silver, yesterday’s close: Settled at 27.614, up 0.924
It is easy to get stuck in the forest and miss the trees. This is especially true when a trend turns violent. In such a pullback as sharp as we have seen across Gold and Silver futures it becomes ever-important as a risk manager to forecast the potential depth of the downside. In doing so, one might surrender strong upside conviction. At the end of the day, one does not know in the thick of volatility whether a trend is broken or shaking out. For instance, look at Coffee losing more than 20% from its peak during the same timeframe, relative to Silver’s 12% correction and Gold’s 7% correction. With that said, we would like to believe the weekly chart for Gold and Silver remain very constructive. Yesterday, we highlighted the bull-flag developing for Gold. Ultimately, this is a decade long breakout playing out, and although Silver has failed to clear $30, and has traded nowhere near its record of $50, in March it decisively broke a down trend line from its 2011 record high. Navigating the ongoing volatility will remain tough, and there is no perfect recipe to manage risk, but we welcome you to connect with our trade desk, we would love to share some of our strategies with you.
Bias: Bullish/Neutral
Resistance: 2338-2339.5***, 2347.7***, 2353-2358.9***, 2364.4-2367***
Pivot: 2325.3-2330.5
Support: 2319.4-2322.9**, 2312.7-2314.5**, 2300.6-2305.8**, 2291.5-2296.2**, 2281.8-2285.2***, 2257.1***, 2246.6***, 2231.2-2238.2****
Silver (July)
Resistance: 27.66-27.76***, 27.91-27.93**, 28.02-28.22***
Pivot: 27.55
Support: 27.39-27.44**, 27.15-27.28***, 27.01**, 26.89-26.91**, 26.65-26.69***, 26.17-26.30****, 25.89-25.95**, 25.32-25.47***
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*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Gold, yesterday’s close: Settled at 2331.2, up 22.6
Silver, yesterday’s close: Settled at 27.614, up 0.924
It is easy to get stuck in the forest and miss the trees. This is especially true when a trend turns violent. In such a pullback as sharp as we have seen across Gold and Silver futures it becomes ever-important as a risk manager to forecast the potential depth of the downside. In doing so, one might surrender strong upside conviction. At the end of the day, one does not know in the thick of volatility whether a trend is broken or shaking out. For instance, look at Coffee losing more than 20% from its peak during the same timeframe, relative to Silver’s 12% correction and Gold’s 7% correction. With that said, we would like to believe the weekly chart for Gold and Silver remain very constructive. Yesterday, we highlighted the bull-flag developing for Gold. Ultimately, this is a decade long breakout playing out, and although Silver has failed to clear $30, and has traded nowhere near its record of $50, in March it decisively broke a down trend line from its 2011 record high. Navigating the ongoing volatility will remain tough, and there is no perfect recipe to manage risk, but we welcome you to connect with our trade desk, we would love to share some of our strategies with you.
Bias: Bullish/Neutral
Resistance: 2338-2339.5***, 2347.7***, 2353-2358.9***, 2364.4-2367***
Pivot: 2325.3-2330.5
Support: 2319.4-2322.9**, 2312.7-2314.5**, 2300.6-2305.8**, 2291.5-2296.2**, 2281.8-2285.2***, 2257.1***, 2246.6***, 2231.2-2238.2****
Silver (July)
Resistance: 27.66-27.76***, 27.91-27.93**, 28.02-28.22***
Pivot: 27.55
Support: 27.39-27.44**, 27.15-27.28***, 27.01**, 26.89-26.91**, 26.65-26.69***, 26.17-26.30****, 25.89-25.95**, 25.32-25.47***
Sign up for a FREE trial of our daily research: bluelinefutures.com/free-trial/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.