As expected, silver is continuing it’s now very widely anticipated ascent to 100, having printed yet another higher high over $93.50 this week. The move to $100.00 or more now seems to be the consensus among analysts and participants in the precious metals space, a yellow flag in this trader’s opinion.
A look at a middle-of-the-road Canadian inverse silver ETF paints a picture of capitulation. Recall that for every seller there is a buyer, and volume this week has shattered prior ceilings by orders of magnitude, as shown below.
I am not saying that silver is ready to crash right now – but I am certainly postulating that caution is increasingly warranted, and bulls should be considering their exit plan in parallel to what may currently feel like upside exuberance.
Daily stochastics still have room to move to the upside as price marches to $100
NOTE that when a target price is widely anticipated – price has tendency to tun down just short of said target, leaving late buyers caught offside.
A quick look at stocks reveals the S&P 500 trading at a multiple of historical average conducive to a correction – which history shows can occur quite swiftly.
Market participants I think would do well to keep front of mind that complacency is the enemy of profit sustainability and growth, in all endeavours.
