The threat of this Silver correction lasting longer and going deeper exists. Even gold has the same pattern so it’s not just silver that is acting this way. Silver has diverged from gold in that they are many months apart from their respective bottoms this summer. This tells me that silver is in a big bearish rally that should still have lots of room to move up. Last week the commercials with gold and silver added to their long positions which is a bullish sign at least in the short term. With North Korea threatening hydrogen bomb destruction, it is very understandable that investors could seek safe-haven at any time.
When I was a teen nuclear bombs were being set off around the world, spreading radiation into the ice sheets which also showed up in the wine being produced at that time.
In the mean time the US dollar commercial positions have switched, where they are now net long on the US dollar, and net short the Canadian dollar.
The USD net long ratio is not that large and we need a bigger net long position before any real concerns are valid.
I would love to see a zigzag or a flat correction to play out in silver as that will help to keep the bullish forecasts alive. Silver has come very close to my target price level, but the pattern has not. In my world pattern over rides price, just like it does when we look at any idealized chart.