The 1-year chart for gold is shown below for the purposes of comparing it to the COT chart immediately below it…
Commercial short and Large Spec long positions are still at a very high level, having only eased marginally last week. This is not good news for silver bulls, and suggests that, near-term rally or not, silver is likely to drop back to the $18 area at the supporting trendline of its major uptrend channel shown on its long-term 15-year chart lower down the page, and possibly lower. Bulls will want to see the COTs ease considerably on such a drop.
The 4-year chart for silver doesn’t exactly look to hot, although this should be viewed in conjunction with the 15-year lower down the page.
Other than the admittedly scary COT chart, the long-term 15-year chart for silver still looks good, as it is now in a zone of strong support above the support of its long-term uptrend line.
End of update.
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