NY Silver COMEX Futures Summary Analysis By: Marty Armstrong | July 28, 2018
Analysis for the Week of July 30, 2018
THE ANALYSIS PERSPECTIVE AS OF THE CLOSE OF Fri. Jul. 27, 2018: NY Silver COMEX Futures closing today of 154930 so far is trading down about 9.63% for the year from last year's closing of 171450. Thus far, we have been trading down for the past day, following the high established Thu. Jul. 26, 2018. We did penetrate the previous session's low and closed lower. Nonetheless, the market remains rather weak. (Note: We have included reference to Reversals and Short-Term timing considerations in this Summary Analysis, but please keep in mind this is a preview only - these references will be removed from Summary Analysis and moved to our higher levels of market analysis upon the upcoming launch of our expanded platform service.)
The historical major high took place back in 2011 and we have then witnessed a bearish subsequent trend for 6 years. The correction since that high has been a 27% decline with the next general key area to watch would be 341765 and a closing beneath that would technically imply a more correction process unfolding on a bit more sustain basis near-term. There was a subsequent correction low that formed during 2015 and we have bounced some 13% which has been a reasonable rally to date. We have elected both long-term yearly buy signals during this bounce currently which suggests that a pause in the decline was warranted. This market on the yearly level has been consolidating since the high established during 2011 for the past 6 years with a subsequent low established during 2015 at 136200.
Meanwhile, our technical resistance stands at 249128 and it will require a closing above this level to signal a breakout of the upside is unfolding. Applying our Reversal System, our next Weekly Bullish Reversal to watch stands at 164860 while the Weekly Bearish Reversal lies at 151640. This provides a 8.01% trading range. Turning to the broader Monthly level, the current Bullish Reversal stands at 177460 while the Bearish Reversal lies at 161400. This, of course, gives us a broader trading range of a 9.04%. Immediately, we closed the last session trading at the 154930, which is below this level on a daily closing basis at this moment. We need to close above this on a weekly basis to signal a rally is unfolding. Right now, the market is trading some 6.02% beneath that level.
A possible change in trend appears due come August in NY Silver COMEX Futures so be focused. The last cyclical event was a low established back during December 2017. Normally, this implies that the next turning point should be a reaction high. However, so far this market has already broken that previous low established at 156350. This strongly implies we are in a cycle inversion process, which tends to be rather bearish overall. Last month produced a low at 159450 but closed on the weak side and we need to penetrate that level on a monthly closing basis to suggest perhaps a further decline.
Our Daily level momentum is bullish while the trend indicator is neutral providing a mixed short-term posture for the market. Turning to the broader picture, our long-term trend and cyclical strength indicators are both bearish reflecting resistance forming at 153400.
On the weekly level, the last important low was established the week of July 16th at 151850, which was down 13 weeks from the high made back during the week of April 16th. This was a key week for at least a temporary low. We have been generally trading up for the past week from the low of the week of July 16th, which has been a move of.0323%. Nonetheless, we have not elected any Weekly buy signal to date.
At this moment, this market is in a downward trend on all our indicators looking at the weekly level. Bearing in mind the direction of this trend, we had been moving down for 5 weeks. Subsequently, the market has consolidated for the past session. The last high on the weekly level was 173500, which was created during the week of June 11th. The previous weekly level low was 151850, which formed during the week of July 16th, and only a break of 151850 on a closing basis would warn of a technical near-term change in trend. However, we still remain below key support and key resistance now stands at 162800 above the market.
Some caution is necessary since the last high 182900 was important given we did obtain two sell signals from that event established during September 2017. That high was still lower than the previous high established at 186550 back during April 2017. Nevertheless, at this time, the market is still weak trading beneath last month's low. Taking a broader view, this market is in a downward trend on all our indicators looking at the monthly level. Addressing the direction of this trend, we had been moving down for 3 months. Subsequently, the market has consolidated for the past 6 sessions. The last high on the monthly level was 182900, which was created during September 2017. The previous monthly level low was 143400, which formed during July 2017, and only a break of 160700 on a closing basis would warn of a technical near-term change in trend. We have generated a sell signal, so some caution is required.
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