Silver Breakout Looming | The Mesh Report

Silver Breakout Looming

The Gold Enthusiast June 30, 2020 Comments Off on Silver Breakout Looming

It’s been a tough year thus far for silver as it’s massively underperformed gold and remains flat year-to-date, but the relentless bid since the mid-March low suggests that we might finally be seeing a change of character here. Heading into June, silver was up by more than 55%from its March low, and a sharp retracement would have been entirely normal after a rally of this magnitude.

While it looked like we were going to see a sharp retracement as of mid-June, it’s now looking like silver is going to finish the month near its May highs. This is a sign of extreme strength, and often the best indication that an asset wants to go higher medium-term is not how it goes up, but how it sells off. This favorable technical picture is corroborated by a complete disinterest from small speculators in the silver trade, with exposure remaining near 1-year lows. Let’s take a closer look below:

A circuit board Description automatically generated

(Source: Author’s Chart, CFTC.com)

This time around, however, we are sitting at the same levels for silver, and long exposure continues to remain well below 40,000 contracts, coming in at 37,000 contracts last week.

Continue Reading At The Gold Enthusiast

Comments are closed.