September Silver (SIU7)
- Thread starter Realist
- Start date
Right, As I mentioned previously, Silver was looking much weaker than gold and the selling has since resumed. The last 2 weeks of August is normally bearish for Silver from a seasonal standpoint as well. Once the FND has passed for the September contract, I expect to see a major low for Silver likely in the 11.50-12.00 range...
90-Day T-Bill Yields went down as much as 15% at one point today and have since rebounded about 5%. Today's action resembles a panic in my view and capitulation is near. As suspected, the liquidation in Silver today was very severe and crashed as low as 11.06 on the cash market. The silver pit was about 5 cents from hitting the daily limit at one point today as well. It has since rebounded by about $0.60 so far. If we see a move back over $12 real soon, then this is likely a major, major low. I am long some SIZ7 from near the lows in anticipation that this was indeed the low that I have been expecting...
Something very interesting occurred today with Silver. Over the last 5 years of the metals bull market, whenever Silver got whacked and its RSI went below 30, this ended up marking a MAJOR low in Silver prices. The entry point for safety would be to enter silver positions when the RSI went back over 30 which occurred today. The time frame of an August low is upon us and if the silver price gradually improves over the next week or so, then perhaps this is a major buying opportunity (finally)...