We continue to deliver actionable trade ideas for our readers and those who follow us on here, on X, on Instagram or on Facebook where you can locate us merely by searching for TradeGuidance.

If you like this little piece we penned for you about a week ago https://www.barchart.com/story/news/28776789/is-the-silver-price-pullback-a-buying-opportunity then more than likely you will like what we are posting here as it is purely a continuation piece as Silver unwinds to accommodate for the profit taking from participants owing to the tag of the initial profit target. This rally however, appears to have some legs and unlike Gold which appears stalled in the 2600~2710 price zone now for a few sessions, Silver appears to be moving more in alignment with technical analysis. So the question begs, where is resistance in this rally so as a trader one could potentially target this resistance price zone while also focusing on short-term support, alongside the open interest in options and futures contracts. Here is a brief look at the COTS snapshot from CFTC's website for Silver as of Oct 1, 2024.

Longer-term resistance points

So you can see that as we reach these interim highs after the 11.64 low we made into the height of the pandemic period, the long/short story is getting a bit tilted to the sell-side as market makers begin offloading contracts in the interest of profit taking from longs held for the December expiration contract. The longer-term resistance points sits in a large 6+ point span between 35.235~41.650, so therefore therefore there is room for continuation to the upside.

Actionable information for the short-term focused participant

For the short-term focused trader, initial support is at 32.065, so keep a close eye on a potential pullback from the Friday settlement at 32.445 and in the event we drop below that support price point, we could encounter additional profit taking. This past Friday we made a high price print of 33.225 and immediately gave up the 33-price handle following the reactionary trades and profit taking of the monthly jobs data. There is now support between 32.070~32.315 for the very short-term market participant targeting new interim highs at 33.575 which keeps the long focus alive.

Charts download links

1. 1. The long term: https://tradeguidance.com/newsletters/si-long-term-10-05-2024/

2. The short term: https://tradeguidance.com/newsletters/si-short-term-10-05-2024/

Give us a try, subscribe for a month and have us guide you with actionable insights with a goal of making you profitable as a futures market participant.