• 376 days Will The ECB Continue To Hike Rates?
  • 376 days Forbes: Aramco Remains Largest Company In The Middle East
  • 378 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 778 days Could Crypto Overtake Traditional Investment?
  • 783 days Americans Still Quitting Jobs At Record Pace
  • 784 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 788 days Is The Dollar Too Strong?
  • 788 days Big Tech Disappoints Investors on Earnings Calls
  • 789 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 790 days China Is Quietly Trying To Distance Itself From Russia
  • 791 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 795 days Crypto Investors Won Big In 2021
  • 795 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 796 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 798 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 798 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 802 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 803 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 803 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 805 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Silver Market Update

Originally published August 15th, 2011.

Silver held up surprisingly well during the stockmarket collapse - you will recall that we had expected it to take more of a beating - no doubt assisted by gold's sparkling performance, so that now, having held above strong support, and with a marked improvement in its COT structure over the past week, it is believed to be poised for a really strong upleg.

Silver 6-Month Chart

The 6-month chart for silver shows HUGE upside potential, with a powerful uptrend starting from right where we are now. If the interpretation of the wave count is correct (this can be a big "if" of course, but it does look very clear at this point), then the point we are at now is close to the trough of the wave 2 reaction that should now immediately lead to a strong wave 3 uptrend, all this following the 3-wave A-B-C correction shown on the chart. Even without reference to wave theories the chart certainly looks encouraging as silver managed to break above the quite strong resistance in the $39.00 - $39.50 zone on its wave 1 advance which is now functioning as a support level, in addition to which its moving averages are now in bullish alignment and it is not overbought on short to medium-term oscillators as made clear by the RSI and MACD indicators on the chart. Everything appears to be in place for a big rally to get going - "all systems go" as they used to say.

Silver COT

Further evidence that a big rally is brewing in silver is provided by the latest COT chart, which shows a surprisingly large reduction in Commercial short positions in just one week - the Commercials are getting out of the way, which signals a rally - and it may have just started with today's 85 cent rise.

 

Back to homepage

Leave a comment

Leave a comment