Silver Technical Analysis
Silver has rallied a bit during the trading session on Monday, and as you can see is still stretching higher.
Although it is starting to show signs of gravity, really, at this point, I think you’d have to be reckless, maybe, to start chasing because just in the last two and a half days, we’re up 14% almost. And that’s just not normal, especially as volume hasn’t been particularly impressive. So that’s something to keep in the back of your mind as well.
Market Thinness and Pullback Setup
With this, I think a pullback probably comes, and that pullback could be a buying opportunity. I mean, I certainly wouldn’t want to short this market, at least not yet. Someday it’ll be the greatest short ever, but right now it just isn’t. There is still panic on the idea of a lack of physical silver, but quite frankly, although gold is bullish, we’re not seeing this type of behavior in the gold market, and therefore, I think this is probably more or less a sign of just how thin the silver market can be.
With this, I think it’s buy only, but you don’t chase a 15% move in three and a half days, three days. You just don’t do it. It’s a great way to lose a lot of money. So if you’re not involved in silver yet, you have to wait for value, and it may not come anytime soon. You just have to be able to stand back and watch it go. Alternatively, though, if this does continue, then gold probably ends up being the play.
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