Posted on May 18, 2015 12:03
Silver markets initially fell during the session on Friday, but found enough support to turn things back around and form a hammer. The hammer sits right at the 17.50 level, and if we can break above the 17.50 level with significant, we believe that the market will then head to the 18.50 level, offering a call buying opportunity. With that, we are bullish of silver and also look at pullbacks as potential call buying opportunities on signs of support.
The S&P 500 looks as if it’s ready to break out above the resistance in the 2120 region, so therefore we feel that it’s only a matter of time before we go much higher. We are buyers of calls on pullbacks, just as we are buyers of calls and breakouts to the upside. We believe that eventually the S&P 500 heads towards the 2200 level, and then perhaps even higher than that given enough time. We have no interest in buying puts.
Looking at the EUR/USD pair, we did pullback a little bit during the session on Friday, but quite frankly we feel that there is enough support underneath that eventually the buyers will step back into the marketplace, and push prices higher. There is a massive amount resistance between the 1.14 level and the 1.15 handle, so a pullback in order to build up momentum is perfectly normal. Once we get above the 1.15 level, that will buy all metrics that we can see make this a complete trend change and suddenly the Euro is favored.
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