Friday, October 3, 2014

Silver COT (Commitments of Futures Traders) Weekly Chart

Silver has been slapped silly in recent weeks. The red arrows on the silver COT chart show the sharp drop in silver price since the July topRed circles identify silver tops and green circles identify silver bottoms. The COT lags by a week or more so the bars can easily be printing inside the green circles identifying a bottom in silver just like in December 2013, February 2014 and June-July. When marrying the COT chart above to the silver weekly candlestick chart a jog move may develop over the next month. The weekly candlestick chart not shown displays weak and bleak indicators so as silver catches a bid and bounces in the near-term, the weekly candlestick chart likely wants to see lower numbers again. The silver price printed under the 17 psychological level at 16.85.

So combining the regular weekly stock chart and the COT above, the expectation is for silver to bounce in the near term (a few days or week or so), probably following gold's lead, but price will probably come back down. Price will likely trail lower until the COT prints bars more in tune with the prior silver lows where a bottom will be placed. So if you are a nimble trader you can perhaps make some money in the VST on the long side with silver but the more attractive entry area if you are a longer-term trader and lower risk trader is probably sub 17, say at 16.10-16.90, which should occur in the next week or three. With the COT bars in the green circles, silver would be expected to place a bottom anytime over the next month. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

The COT chart is annotated by Keystone. COT charts are offered by the following excellent resource;

COT Price Charts

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