A short
squeeze is coming our way in the silver market. The
weekly chart below shows the tremendous divergence building between the
RSI and Price. It won't take much energy to get the price headed in
the opposite direction. Once we get confirmation, I will let everyone
know. We are still subject to one more possible flush to the downside,
but the the downside from here is very limited with huge upside potential.
Now, let me let you in on my secret weapon... the Monthly VC Chart. This will be the only time that I post this chart. Based off the Monthly VC chart, we are between the buy1 and buy2 level. As a trader this is very exciting to see, especially now when many are pessimistic. July should be a very interesting month for silver based off these two charts. A short squeeze is coming our way sooner than some may think. Before we get ahead of ourselves, after the first initial short squeeze, which I expect in July, I would not be surprised to see lows tested one last time to destroy any bullish confidence left in the market. I am expecting a nice swing trade coming out of this price action soon and then a larger swing trade to set up once the lows get retested. This could mean a lower low later in the year is possible. As a trader I will be open to this, but one thing is sure, I am not selling my physical metal in expectation of this. I will only use further pull backs as invitations to buy more physical and trade the volatility to increase my cash flow as I scale in at these lows.
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TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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