Clive Maund: Silver’s Sharp Reaction Back

Clive says silver has reacted sharply after its PARABOLIC BLOW-OFF TOP…

by Clive Maund via Streetwise Reports

Silver reacted back sharply on Thursday and Friday after a parabolic blowoff top. This was not a final top, but it does indicate that silver needs to take a rest and consolidate/react back, probably for at least several weeks.

The latest silver COT is also showing a 1-year record extreme for positions, giving grounds for caution…

Click on chart to pop-up a larger, clearer version.

Although the longer-term Hedgers chart for silver is not at the extremes that it reached in 2016 and 2017, readings are also at levels that give grounds for caution, especially considering that silver just did a parabolic slingshot move.

Click on chart to pop-up a larger, clearer version.
Chart courtesy of sentimentrader.com

The conclusion is that silver has started a corrective phase, and, given the nature of the beast, it could be quite scary for the unprepared once it breaches the parabolic uptrend, but with gold especially having signaled the start of a major bull market any such corrective action will be viewed as presenting a rare opportunity to buy silver investments at very good prices ahead of the major uptrend that is expected to follow.

Originally published on CliveMaund.com on September 9, 2019

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.