Jack be nimble, Jack be quick

Despite a 1.5% decline on Friday, we remain cautiously optimistic as most technical indicators show the market correcting from "overbought territory," as seen through the slow stochastic indicator. Without a continuation above $2050, traders should use any close below $2000 as the first warning sign that a correction could be brewing. A critical level we are watching is the March 21st downward spike low to 1965.9, now the first significant support. A break below 1965.9 will begin signaling a near-term failure, and our proprietary "trend neutralizer" level will fast approach $1957.8. Any close below $1957.8 will shift trend traders to the sidelines, and they should wait for the next bull or bear trading signal. Therefore, we would use that correction to re-establish long term positions in the December contract. 

Having the flexibility to enter and exit the market quickly makes it essential for Precious Metals investors to have a futures trading account alongside their core Physical Precious Metals holdings. If you are interested in speculating on the rise and fall of the price of Precious Metals on a shorter-term basis, such as two weeks or two months, or If you have never traded futures or commodities, I just completed a new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 1000 oz Silver futures contract. You can request yours here: Trade Metals, Transition your Experience Book. 

Daily July Silver Chart

On a short-term basis, the technical backdrop shows Silver extending the "Bull flag pattern" we identified several weeks back while continuing to achieve new swing highs and breaking through the consolidation zone seen from December through February. The eight-day exponential moving average (EMA) has worked exceptionally well in helping Silver traders from a risk management standpoint and looking to reduce Silver exposure on the first close below. Traders then wait to see if an extended selloff occurs below our "Trend Neutralizer level" at $23.54/oz. If that event happens, we could be setting up for a multi-week correction and retesting the $20/oz. seen back on March 8th. However, we will begin establishing new "core long positions" by scaling down to $20 in anticipation of the Fed's first rate cut where we could see an upward explosion in both Gold (up to $2500) and Silver on up to $35/oz. 

To further help you develop a trading plan, I went back through 20 years of my trading strategies to create a Free New "5-Step Technical Analysis Guide to Gold that can easily apply to Silver." The guide will provide you with all the Technical analysis steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here:  5-Step Technical Analysis Guide to Silver.