One of my old friends called me this past Spring full of bullishness for Silver.
Granted silver had a nice pop. In the last week of April, we almost got a $50.00 print.
Fast Forward to the end of September. Silver prints 26.150. That’s a loss of 1/2 of its “value” in 6 months.
What happened? Evil speculators? Evil someone? Corporate Greed? Or just plain old fashioned human nature.
I vote for the latter.
Since that $26.00 print, we had a $6.00 bounce, or a 20% return if you bought the low.
More interesting, our August high at $44.00 sucked a lot of bulls back into their longs, which precipitated the puke sell off down to the $26.00 level. $33.00 an ounce is resistance I’d look at now. I’d sell it at $35.00 as well. A rally back to $37.30 would be a gift to sell into.
So what to do?
I like being a small buyer here at 31.50 to 31.00. If 30.50 holds then we should bounce up to 35 or maybe 37.00 In any event, risk one unit to the down side to try to make three to four units on the upside.
Cautious buyer, looking to sell it at 35 and 37.30.
That is all.