Keep in mind that silver is highly sensitive to the US dollar, so if the US dollar starts to take off and gain strength again, that will work against it.
That being said, I also expect to see a lot of choppy volatility regardless, and quite frankly silver is known for that anyway.
Because of this, you need to be very cautious with your position size but we have clearly seen a turnaround of shorts, and now it looks like we will have to determine whether or not the market can continue to find momentum in one direction or the other, but I suspect this is more of a “fade the rally” type of situation going forward.
Silver markets have fallen a bit during the trading session on Monday to reach down to the $20.60 level. At this point, the market turned right back around to show signs of life again.
