Silver Prices Look To Break Out Soon

Chicago (Oct 29)  Silver futures in the December contract were very quiet this Tuesday afternoon in New York finishing down $.05 an ounce at 22.50 waiting for the Fed minutes to be released tomorrow afternoon which could cause some big volatility for the rest of the week and I'm still recommending a long position because the Federal Reserve will not stop the money printing and there could possibly even be another QE down the road which is going to be beneficial stock and precious metal prices.

Silver futures are still trading above their 20 and 100 day moving average consolidating the recent move with a possible double bottom created around 20.50 with the next major resistance at $23 an ounce and if prices break the summer highs of around $25 an ounce I think it could be off to the races to the upside in silver prices especially if the U.S dollar continues its bearish trend.

 If you're looking to get long the silver market there are 2 ways to play the situation either by buying an outright futures contract or looking at call options limiting your risk to what the premium costs and I think there are some good bull call spreads in the July contract giving you plenty of time which increases the probability of success as long as your option strike isn't too far away from the current futures price. TREND: HIGHER -CHART STRUCTURE: EXCELLENT