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Silver Looks To Consolidate

Published 05/08/2015, 01:55 AM
Updated 05/14/2017, 06:45 AM

Looking at the upcoming session, we anticipate that it will be fairly quiet. After all, the nonfarm payroll numbers come out on Friday, so this of course tends to put a lot of people off from trading the day before. Ultimately, we do see a couple of trading opportunities but recognize that they will all more or less be of the shorter-term variety.

Looking at the silver market, we recognize that there is a very obvious consolidation area that has been formed between the $17.50 level on the top, and the 15.50 level on the bottom. We are in the middle of this area, but we think that sooner or later volatility reenters the marketplace, and we would be buyers towards the bottom of that range of calls, and of course buyers of puts towards the top of that range.

The EUR/USD continues to go higher, as the US dollar continues to struggle overall. The market looks as if it is going to trying to reach the 1.15 level, but we see quite a bit in the way of noise above, so truthfully we think that the market will offer call buying opportunities on short-term charts only as we pulled back from time to time.

The S&P 500 fell during the session after initially trying to rally, but we still see quite a bit of support below. After the nonfarm payroll numbers, we feel the markets will calm down and began to climb again. We will have to wait to see what those numbers are, but quite frankly we have no interest in buying puts, and we simply wait for supportive candles in order to start buying calls in the S&P 500 yet again.

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