"Speculators in gold and copper futures and options raised their net long positions in the week ended March 29, while they trimmed bullish bets in the silver market, according to the latest report by the U.S. Commodity Futures Trading Commission." Source: Reuters.
This could be a reason why silver's upward movement in price is stalling. When price keeps testing the same resistance level while the momentum oscillators weaken, it is usually a sign of distribution (smart money distributing to dumb money; yes, it sounds harsh but that's the way these guys talk). I am wary of negative divergences and although it could be some time before price falls, I am going to err on the side of caution. Not buying more at current levels.
Related post:
Silver's sideway movement.
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