The silver price is working off the epic and hysterical spike to and through what should have been (and ultimately was) strong long-term resistance in the 26 to 27.50 range. I noted at the time that it had smashed what I thought was very stern resistance. But you know Silver when that horse gets the bit in its mouth.
Then came the gold and silver pump brigade to fire up the masses, culminating in the the ‘Buffett buys a gold stock’ hype being trumpeted by the usual gold bug promotional suspects, which not so surprisingly called the top in the precious metals.
So here is silver, which per the NFTRH trade log and both portfolios, I am well short of via ZSL. It along with leveraged short EUO are my indirect hedges to the miners * I’ve decided to keep holding.
I have long felt that to even begin to unwind the hysteria silver would test the 21.23 bull market breakout point at 21.23 (toward which the SMA 200 is now rising), with strong support around 18.70. We’ll see.
Don’t personalize it. Nefarious forces are not manipulating silver. The pumpers already tried to do that. This is natural and expected market activity. The silver price had remained vulnerable as long as it remained below the down-turned SMA 50.
*Gold miners that is. I also hold XME, SQM and several other items that are cyclical as opposed to the preferred counter-cyclicality of gold mining.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.