An update to yesterday’s update.
When I looked at silver in US pre-market this morning it had a big red candle well below support. Now it has hammered back above. I normally don’t like to broadcast play-by-play for sports fans but I thought this was interesting. As of now silver holds the would-be support zone at 18.70.
I don’t have much of a lean one way or the other as to whether or not the pullback is over. Both scenarios (a harsh, quick whipsaw and reversal and a more extended grind down to around 17.37) would be in keeping with a healthy bull market type pullback. My bias? I continue to think it is vulnerable generally, considering the CoT and a still-overbought situation. But the bias is not strong because… silver, its bull moves can be hysterical and we’ve already taken a decent pullback.
Bottom line is that at this time silver remains above the first support level after a quick whipsaw well below it. The spike above my ‘best’ target of 18.67 was either a bull trap or this morning’s spike below was a bear trap. Both are short-term situations concerning traders more than investors. Silver remains bullish, obviously, on its bigger picture with a goal of eventually establishing a bull market by crossing the 2016 high.
