The price of silver today (Monday, May 1) is down 0.5% and trading at $17.17 per ounce. According to FactSet, that’s the lowest price since the metal closed at $16.92 on March 15.
In my review of silver prices in last week’s column, I pointed out how silver prices had been retreating the entire previous week.
I also said that momentum indicators like the RSI and MACD were pointing to further downside for the precious metal.
Since then, the silver price has headed almost exclusively downward, hardly even stopping to test its 200-day and 50-day moving averages.
Commitment of Traders (COT) reports have been showing ‘smart money’ hedgers as very bearish, while traders have reached an all-time extreme bullish stance. Since big ‘smart money’ investors typically put more money in the market than individual traders, the former have a bigger influence on the price. That means their more influential bearish positions strongly suggest short-term silver prices will continue to weaken from here, while traders will bet on the possibility of a bounce.
This post was published at Wall Street Examiner on May 1, 2017.
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