- Silver has had an explosive run during the session here on Monday. And it looks like we are doing everything we can to reach that crucial $40 level.
- However, one thing that I cannot help but notice is that volume just isn't that exciting right now.
- And that does make a certain amount of sense. mean, we’re late July trading.
So, I don't know if I trust these pushes in general. Now I do believe that eventually we will reach $40, and we break above that part I trust. But I also recognize that you need to see a reason. We need to get people excited about buying maybe starting up a short squeeze as things stand right now. It looks like we're testing basically the heights and maybe struggling a bit.
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I look at this as a market where if we get pullback, you have to be thinking about buying, especially if we were to get back down to the $37 50 cents level. I don't think we will. But if we do, there's a lot of market memory. And I think that is an area you have to pay close attention to. The market breaking down below that level would be rather interesting and could open up a move down to the $37 level, possibly even $36.50. I would not be excited about shorting this market, but I would recognize at that point that there would be some problems with the overall uptrend.
I don't expect to see that, but it's obviously something that could happen. If we break above the $40 level, that would be extraordinarily bullish. And I would think that it would kick off another move, probably $2.50 worth of movement, maybe even a little more than that. That has us looking at $42.50 based on the measured move. Either way, this is a long only market right now, and I would treat it as such. I just don't want to chase.
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