Silver got slammed last night when futures markets re-opened to begin the week.
At its lowest level, the precious metal had fallen nearly 9% to $20.25 an ounce.
Remarkably, it’s already staged a big comeback, and it just turned positive on the day.
In the past few minutes, it’s screamed higher, and is now trading around $23.00, up 2.7%.
Miller Tabak’s Jonathan Krinsky offers some commentary on why the details of the sell-off may actually be positive for those bullish on gold and silver:
The other interesting action, which started last night, has been the precious metals. After being down over 8% at one point, Silver has nearly recovered the entire decline. Gold has actually gone into positive territory. If you are a Bull on precious metals, there are some positives in that type of action. First, Gold did NOT make a new low with Silver overnight. The low of 1338 was slightly higher than the April 16th low of 1322. That could be considered a non-confirmation and “potential” bullish divergence.
Also note that even as Silver made a new low by a wide margin, RSI does not appear to be doing so, another non-confirmation. Of course none of this means the medium or long-term trends have changed, they are still quite bearish. It does, however, open up the potential for a short-term bounce.
The chart below shows the price action in silver today.
The next chart is a bit more zoomed in and shows the vertical move in silver in the past few minutes.