
As gold and silver hit fresh six-week highs, with prices for both said to be “regaining altitude on stimulus rumours,” Trader Dan Norcini sees the above chart revealing “all you need to know about whether or not silver is going to perform. If risk is in and hedge fund money flows are coming into the commodity complex in general, it will move higher. When it does, silver goes right along with it. When risk is out and money flows OUT of the commodity complex, silver sinks like a lead brick.”
On Saturday’s King World News‘ “Weekly Metals Wrap,” Norcini said that “what I’ve noticed over the last 3-4 weeks now is that the hedge funds that had been shorting silver are beginning to cover … because it looked like, based on the technicals, that silver was finding a pretty good bottom down there below $30…. Now we’re at a point in silver where we have a very low long-side exposure, with the market turning bullish as far as the technical indicators go, and the price being above the important moving averages, and what it’s going to do now is to start attracting some of this money that’s been on the sidelines, as long as this environment persists.”
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