The bullish wedge on silver we’ve been tracking hangs by a mere thread and is currently testing its lower trendline. Even if momentum were to suddenly pick up, we’d only consider log positions above the $15.34 high.
However, given that the moving averages are pointing lower and yesterday closed beneath the October and November high, the near-term doesn’t look so bright for bulls. Moreover, traders are on the verge of flipping to net short on rising volumes (open interest) and we’re heading into March and June, which are typically bearish months for the metal.
For now, we’d be interested in shorting whilst it remains between the $13.90 to $14.90 area, and stepping aside if it breaks convincingly back above $14.00 .
