by Clive Maund
Both silver’s price action and its latest COTs suggest that it has just put in a short to medium-term top, a view which is reinforced by what we are seeing in gold, where COTs just hit a record extreme. Long-term the outlook for both gold and silver remains very bright, due to the eventual demise of the current fiat money system, which now out of control and in its terminal phase.
On silver’s 1-year chart, a time period selected so that you can make direct comparison with the COT chart beneath, which also goes back a year, we can see that silver has just turned around beneath resistance at its early May highs, with a pronounced reversal candlestick appearing on Thursday, whose bearish implications were not negated by Friday’s rebound. Since the uptrend that began at the start of the year remains intact, however, and its moving averages are in bullish alignment, we should not at this stage look for more downside than back to the support level shown below $16.