Technical analyst Clive Maund charts silver and explains why he believes it hasn't hit a final top.
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…
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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.
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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.
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The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.