This week's metals commentary will derive from one of the earlier comments that I posted at least a month ago. You may recall from that article I wrote:

I have added a chart to technically comment on what I would consider my "forecast" of silver for the next couple of month. (For extended commentary, I suggest continued reading of the RJO Futures eView.) The two levels of interest I have charted are the 17.205 level and 18.179 level; those being 127.2% and 161.8% respectively of the previous low at 13.625 set back in Mid-December.....

I continued by saying:

In this case, the fundamentals and technicals align with each other, thus suggesting a chance for the silver market to move higher.....

It is now the end of February and silver, as well as gold, has reached substantial new highs. I have kept my chart analysis simple, because this is part of the "forecast" portion of my eView commentaries and we are looking long term. With both metals, we are reaching the top of the channels that I drew. We have started to pull back from the highs and from the tops of channels overall. And until the markets break the trendline in either direction, I'll stick with my view of higher metals prices for the long term.

I would like to briefly discuss my commentary from the most recent eView, where I suggested a short in gold-based on my pattern recognition play. Although it started off as a good trade in the beginning, we were eventually stopped out for a relatively small loss. I will often offer short-term viewpoints for the markets that I feel will be good trades to take for a couple of days and up to about a week. Alternatively, I will also offer long-term viewpoints that will take much longer to materialize (i.e., the information provided above). It will be important to keep note of this while reading the commentary. If you have any questions about my strategies please feel free to contact me anytime.

The risk of loss in trading commodity futures and options can be substantial. Before trading, you should carefully consider your financial position to determine if futures trading is appropriate. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.