For the first time in more than a decade hedge funds & CTAs have moved to a net short position in silver futures:
In addition, commercials have moved to a near flat positioning in silver. Historically this has led to a strong buying opportunity:
From a pure price action/technical vantage point silver is about as neutral and boring as it gets:
Silver is currently right in the middle of its recent range with support near $16.10-$16.20 and resistance near $16.90-$17.00. If a catalyst emerges I can envision a scenario in which a breakout above $17.00 easily has enough momentum to carry it up to the $17.70-$18.00 area.
I can't get bullish on silver solely based on the CoTs just yet, however, I can say for sure that silver has my attention and short of a 2008 like meltdown I think the odds are quite favorable to add to positions in physical silver and select silver producers/explorers.
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