I’ve been analyzing the silver charts this evening and while we did good by closing our shorts in yesterday’s trade, it would not be strongly suggested that we initiate any long positions at this time. I think today and perhaps for the next few days we may see a strong bounce in the silver trade but ultimately, this will turn out to be a countertrend bounce as the price of silver continues to decline. I just don’t see it any other way. Many are calling for a massive reversal of silver and gold and a super-rally that will take the metals back to challenge their highs but I just don’t see that. Silver and gold have had every opportunity to challenge their old highs but haven’t. Silver has fallen out of bed and it doesn’t want to get back under the covers. Silver has become grossly oversold and bearish sentiment had reached near extreme levels. Once this is worked off, expect the metal to resume its decline. I maintain my target of sub $22.00 silver. The next decline should be swift.
I will continue to treat any bounces and counter-trend and look for opportunities to short the metal when my levels are met. I should have some charts showing my rationale up on the site by late Sunday evening.
Barring any jaw dropping news events this weekend, that silver analysis will be my next post. Have a good weekend everyone.
