This chart from Sentimentrader.com looks at the positions by Silver hedgers. At this time a very crowded trade is in play, an 18-year extreme. If history is a guide, Silver is currently closer to a short-term low than a high.
Silver, Gold and Mining stocks have not had much fun this year, as all have declined a large percentage. The declines in Silver and the SLV/GLD ratio have created potentially bullish falling wedge patterns over the past few months.
This week SLV and SLV/GLD are working on short-term breakouts, while momentum is deeply oversold.
Sure haven’t seen this price action in a while! Hi-Yo Silver Time? Sure could be!
