Am 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
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