The market is in a trendless phase - the downtrend has been interrupted but rather than an uptrend starting, the market is consolidating (moving sideways) with a negative or bearish bias.
That is because the -DMI is trading above the +DMI while the ADX line is moving downward from a very lofty level above 50.
Also, the price remains below the 50 day moving average which continues heading downward.
Price would need to clear at a bare minimum the 50 dma which currently comes in near 20.55 but ideally the $22.50 level to generate any stronger upside action.
Commitment of Traders reports show every major category of speculators trading COPPER from the short side meaning that it will take a shift in sentiment among this group that the fortunes of the base metals are going to improve to move them more aggressively into silver, which at this time is still being heavily influenced by its industrial metal role.
Without a rising copper, palladium, aluminum, tin, zinc, price it will be up to gold to bring buying into silver with those who do so focusing more on its role as a monetary metal.
While talk that inflation pressures remains subdued dominates current thinking, the grey metal will underperform gold.
I still like to watch copper prices to get a better sense of what silver might do.
