by Clive Maund
Silver Seek
Whichever way you cut it, silver’s chart looks bearish for the short to medium-term, but against this we must set its rapidly improving COT structure and the mega-bullish silver to gold ratio (by all past standards).
Silver’s 7-month chart is a rather grim picture. On it we see that key support failed this month, leading to a dramatic plunge to new lows, and this support has now become resistance. In addition we see that moving averages have swung into bearish alignment, with a bearish “death cross” having occurred about a week ago. The relief rally of the past week or so in sympathy with the relief rally in the broad stockmarket fuelled by Fed intervention, that we predicted and played via leveraged silver ETFs and Calls, is therefore thought to be petering out and set to be followed by another probably steep selloff, congruent with another decline in the broad stockmarket, and a potentially heavy decline in the Precious Metals sector.