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Silver moving higher on mediocre volume
In watching silver move up towards $44 in today's session, I am struck by the huge amount of air pockets above this market. Based on the manner in which is it moving up, there are simply not enough offers. I get the sense that would-be shorts in silver are terrified to step in front of this market. The dearth of sellers is allowing small bids to take the price up in big steps.
Coming on the heels of what was a huge volume day yesterday, I am a bit concerned about this. Right now it seems to be more a case of fewer sellers than it is a case of more buyers. I want to see the metal clear $44 and hold that level to feel a bit more comfortable about this and I want to see the volume pick up some. This market has come a long way and will need to see plenty of buyers even at these levels to keep it moving steadily upward.
A pause in the move would actually be healthy at this point. It could be that some of the shares are sensing this are a reluctant to jump higher waiting to see if the metal will pause and set back a bit or gather further momentum and just head to $50. Should the latter occur, we will see a rash of short covering in the silver mining shares.
Let's see how the metal fares the remainder of the trading day. If it clears $44, the volume should pick up.
A sideways correction would be excellent for silver at this point in time!
ReplyDeleteSilver in Backwardation again
ReplyDeletehttp://www.goldmoney.com/gold-research/silver-price-in-backwardation-again.html
good thoughts, Dan. I'd have thought at this price that we'd be approaching a selloff from some parties, so it's interesting that sellers aren't coming forward. That would imply they're bullish and expecting the price to keep rising, right?
ReplyDeleteI have never seen anything like this before. Granted I've only been doing this since 2008 but still, it's getting ridonkulous! The mining stocks are getting smoked while the metal is going up. Not sure what to make of that.
ReplyDeleteI think there are so few new short sellers, because there are all ready sooooo many.
ReplyDeleteIn the next day or two where is silver going? any thoughts?
ReplyDeleteTHE MINERS ARE THE SHORT SELLERS WHO HEDGED MUCH LOWER DOWN THE LEG UP IN SILVER .SO THEY WILL NOT BE BENEFITTING FROM BLOW OUT THUS THE DEPRESSED PRICES
ReplyDeleteWill it test 42 (the initial support) before heading higher?
ReplyDeleteThx Dan, appreciate your site.
ReplyDeletewell, the steady stream upwards has continued. spot price now $44.51. will it still be up there at the end of the week?
ReplyDelete