September Silver became a ‘mechanical’ short in theory with last week’s run-up to the green line (x=24.403), but it looked too revved up as the week ended for the trade to be enticing. My gut feeling is that the futures will hit the red line (p=23.33) first, even if they eventually stop out the short, but we’ll look for low-risk opportunities to test this theory rather than trade with a bias. If bears lose this round, that could signal a run-up to as high as 28.48 over the next 5-7 weeks (daily, A= 20.42 o 3-10).
SIU23 – September Silver (Last:24.40)