Significant short covering has been occuring in Silver

Significant short covering has been occuring in Silver

by Trader Dan
Please see the comments on the chart below as this drop in open interest is a reason for a bit of caution in approaching this market. As long as the shorts cover, prices will move higher but one has to be careful to watch for when they might finish up covering.

A push through $50 will force more of this short covering and should attract more buying from the general public but the managed money is still a net seller for the last four weeks. Again – caution is warranted especially with the big hike in margins.

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This entry was posted in Dan Norcini, Dan Norcini Silver Analysis, Technical Analysis, Trader Dan's Market Views. Bookmark the permalink.

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