Still, traders should consider the aforementioned CoT data. Fortunately, there could be more good news than meets the eye in that report.
“Regarding CoT positions on silver, there have been just seven weekly declines of more than 20,000 contracts ever, according to Prybal. The last signal of this kind happened in May 2017, and prior to that you’d have to go back to June 2015, which marked the first signal in nearly a decade,” notes Schaeffer’s. “Historically, these CoT signals have been bullish for silver futures. The malleable metal has averaged much bigger-than-usual gains across the board after a mass exodus of large speculators, with a win rate that doesn’t dip below 67% at any marker up to six months out.”
Since the start of the current quarter, investors have pulled $39.4 million from SLV while adding $3.36 million to SIVR.
For more information on the silver market, visit our silver category.