Silver Is Sitting On A Powder Keg

The Silver Setup

Silver is starting to look interesting again. The metal is pressing against the major downtrend from the mania highs just as the dollar weakens, gold remains a strong anchor and positioning is still far from stretched.

More importantly, the mechanical setup is starting to turn. CTAs could turn into buyers on further strength, upside skew is waking up while outright vol remains relatively depressed, and speculators have yet to really come back.