Silver went back and filled a large upgap established last month on the run higher, and that is a technical positive for the week ahead. I think silver is looking very good since it recently took out the highs for the YTD around $18 and has since come back to correct and consolidate the move, while still sitting within striking distance of the high for the bull market around $21. The fundamentals of course remain stellar, and the huge outstanding short interest could detonate at any time, another very bullish consideration.

IMO the most positive factor for silver that is rarely discussed is that despite several severe bear raids in recent sessions, the longs have held their positions. In years past the first big hint of a selloff would shake the long specs loose, allowing the trapped shorts to cover with profits. This time around it appears to be a showdown and the shorts do not have access to physical bullion if called to settle.

I have added to my silver juniors on the dip and still expect a big surprise move higher to be brewing. It would not come as a surprise to those of us who have been around this sector for a while, but almost everyon else is not paying any attention to silver right now. That too is extremely bullish for the long term.

Have a great weekend all!

mike