Silver Over 37

Thursday I told you this sell off in Silver is almost over and it seems we bottomed (light blue line) a little after 8am on Friday. That morning I explained why I thought Silver bottoming process would start.

So now we have the fundamentals and the technical ducks so to speak lined up in Silver's favor.

What to watch for:

34.5 was the point that held when they tried to bring it back to test 33.20 the very low in this massive sell off. So I think that MUST hold. If not then we go to 33.20 and  I don't want to even look below that right now.

We broke out over 37 this morning with relative ease. A lot of short cover will start here if it takes out 38. You will recall last week the bottom fell out after 39.5 and silver went down 5 straight points without taking a breath. Well those same guys will cover post haste sending us above 40.

This is the market I'm seeing and trading, not the market I want. I would have loved for Silver to recover slowly because then you don't get the recently jilted weak holders back in so quickly trying to recoup losses. You want the long-term secular bull money coming in and buying dips in tranches. But hey, it is what it is. Enjoy the upside, protect capital at all costs on the downside.

Have a great week everyone!