Where’s the Silver lining?

silver_futuresJuly2012.jpgAm I bullish silver long term the answer is Hell yes but in the short run I think the path of least resistance could be lower? Looking at the weekly chart above prices appears to be breaching a trend line that has supported since late 2008.
We should know more depending on the market action the next few sessions but if futures close under $26/ounce I think at a minimum prices challenge $24.
I’m not brave enough to take a short futures in silver with clients currently but there are a number of bearish option trades that I could present depending in your exact risk tolerance. A combination of trading divergent months and writing options could make it a complex trade but to take advantage of a possible $15,000 meltdown in the futures market may be worth a little risk…in my opinion.
Honestly I would be more eager to set up a buy target from lower levels for my clients looking longer term.
To discuss in more detail this chart or any other you can reach me at: mbradbard@rcmam.com or 954-929-9997
Risk Disclaimer: The opinions contained herein are for general information only and are not intended to provide specific investment advice or recommendations and are not tailored to any specific’s investor’s needs or investment goals. You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions (“Forex”) before making any trades. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change without notice. Past performance is not necessarily indicative of future results.

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