SMM Forecast of Silicon Futures Prices Next Week

Prices of the most active silicon contract are likely to move rangebound next week (July 7-13). The SMMI index rose 0.4% on a weekly basis as of Wednesday. The most-traded silicon metal futures contract rose before falling this week.

The machine learning indicates that the most-active silicon contract will fluctuate at lows next week. The random time series model predicts that the price range of the most-traded silicon contract will be [12,430, 13,530], and the extreme price range will be [12,320, 13,630]. According to the SMM weekly fundamentals forecast model, the range of standard #553 silicon metal at Huangpu port will be [12,490, 13,050].

The futures technical indicators suggest that the most-traded silicon metal contract may move rangebound next week. Based on the daily K-line, SMM observed a total of 43 technical indicators, of which 25 were neutral, 5 were bullish, and 13 were bearish. Most of the oscillating indicators pointed to rangebound price movement, while the trend indicators were generally bearish. Energy technical indicators pointed to rangebound price movement; bearish signals this week outnumbered bullish signals but were less than rangebound signals.

Based on both machine learning and technical indicators, the most-traded contract is expected to fluctuate sideways or go down next week. SMM predicts that the most-traded silicon contract will meet resistance in the range of [13,500, 13,600] while finding support in the range of [12,300, 12,400].

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