SILVER: It is almost impossible to predict in which direction it will go but a big move is underway

SILVER: It is almost impossible to predict in which direction it will go but a big move is underway

18 June 2015, 15:11
Sergey Golubev
2
667

Silver market is showing several multi-year extremes. That indicates that a big move is underway.

Since its peak in 2011, silver lost approximately 70% of its value. Since last November, silver has formed a support area on its chart right below $16.00 per oz. That structural trendline is being tested right now. Three weeks before, the number of short contracts added by commercial traders were 19,706 which makes for another historic change.

The Commitment of Traders report for COMEX silver futures positions at the close of trading on Tuesday June 9th showed that 18,028 short contracts were covered by commercial traders.

The rate of change in short positions by commercial traders, one of the key indicators we are monitoring, has moved aggressively from bearish to bullish in a matter of 3 weeks. It indicates there is a lot of tension in the silver market, and the breakout or breakdown is going to be explosive.


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