That thing on Monday had me a little perplexed for a couple of reasons. First, there is the CoT for gold and silver that had been stretched to a degree of short-term risk. Second, because I have a minimum downside support target that has looked nice and logical (noted in NFTRH 569 and previously).
The chart of SLV handily shows silver’s big re-think of the first two days of this week. Silver bugs can be happy the gap is out of there but also realize the pullback does not need to stop at a nice, neat gap fill (again, ref. that there are logical support targets lower). However, on the bull side the gap up has by definition created some short-term support right here, where before there was none.
Now, the various perma conspiracy bug entities out there will see a coordinated “hit” on the precious metals. What we actually see though is a Monday spike that did not make sense and a come to Jesus moment today. The only bugs getting angry should be the ones that knee jerk bought on Monday. For my part, I took a loss on a small DSLV position on that day. Pissed me off a little, but as noted in the Trade Log “Cost of doing business, forward we move.”
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