Silver is in collision course with US dollar which will be a early event as proximal trigger for the onset of hyperinflation in the near-term.Its the good hedge of inflationary markets, And is responding to it.$50-$52 is considerable psychological resistance band on silver markets going back to hunts brother who tried to corner the market.
whose going to sell at this level ?
1.JPM and HSBC have already crushed big time with 40% silver markets future/naked short positions.
2.Margin raised twice or thrice as shorts (commercial traders) are already crushed so got to cover their ass ....as I have see this silver manipulation movie many a time.
3.Hedge funds( aka FED pumped money) looks like shorting mining sector to dislocate metal markets so as to propup fiat paper markets
Okay now lets see open interest on silver markets as its growing and will keep going as month of may and June are traditional metal delivery so guyz buckle for some serious volatility in coming months.
Open Interest with red shaded area with today and y'day.
Okay now lets look at the futures chart as bull were little over enthu in thier run up with a big gap formation which is support but at this juncture as channel resistance came into pic.So we have to respect bear here and little consolidation with little backing and filling.
Futures Chart
Is silver/gold comex nearing default? don't expect any parabolic moves until we see break down in US dollar index to new lows.
Houston Houston are we ready to lift off as count down has already began........so buckle up for bumpy ride before we head to a clearer skies.We are definitely entering into new phase of bull market in precious metals.So guyz stay tune and will keep updating.
One more thing as Many of you have asked me question regarding silver like :
why gold/silver now ? Is Silver a WEALTH ?
Targets for long/short term?
How long we have to hold this?
will try to answer in next blog post.Happy Trading
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