SIN9 Techinicals: High 21.18 on 03-21-2008 | Low 8.40 on 10-31-2008 | Support 11.68, Resistance 18.00
Silver has lost the respect of the index funds and other competitive metals. But, in the last two weeks a helpful boost in trading volume has been directly linked to pit merging with the crude. Silver and Gold is trading beside the crude oil pit and has had a positive reaction to today's volume, especially when the crude oil pit is in a dead trading period.
In this competitive world it's nice to see the Gold vs. Silver rivalry still at odds. Let's check their COT data. Today's total value of the silver contract is $77,000 and Gold is $95,000. That is a difference of $18,000. Back on the lows of the fall of 2008, the difference was $29,000. It comes down to the risk more the the reward and momentum of liquidation. Open interest of Gold is 391,000 but Silver is only 105,000 contracts. If the Gold bulls fail to get over $1000, in the next few months, I think the 391000 contracts will begin to peel off some contracts. Once the momentum turns, more then likely the high of the year is in.
Back in the last week of April, the Funds Longs (FL) made a all-time low of 24121. Basically this means the FL gave up their positions and as many traders can confess too, it happens to all of us, stopped out of the trade on the low.
Comparing COT charts of the silver to the gold you can see gold has more constructive bullish sentiment the last 6-months.
Parallel trend lines are in play. Not only are they parallel, but the rallies are equal in length. A trade below the trend line will indicate the top is in for while and a correction is probable.
For the WD Gann traders this would be time and price squared. The 1x1 is running at a speed of .10 per week and were halfway through the mathematical square.
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