James Turk – New Buyers Taking on Silver Shorts is Very Bullish

Posted: January 8, 2011 in Current Events, Precious Metals, Silver

James Turk was interviewed by Eric King on KWN.  Turk discusses how any correction in silver is met with new buyers.

“One other indicator that the game has changed is that Comex open interest actually increased on Wednesday’s big takedown.  What this means is that all of the silver shorts that are being put on are being met by new buyers.” 

Turk is correct the game has changed.  In the past violent corrections would be met by selling, now violent corrections are met with massive physical buying.  Turk states:

“In other words there has been no net long liquidation, which one would expect on a big price drop.  The bottom line is that it looks like new buyers are willing to take on the silver shorts, which is very bullish.”

Short term $28.50 is support.  If we break through $28.50 look for $28.00 as the new support level.  If $28.00 is broken $27.00 will be the new support level.  I don’t think we will go below $27.00.  All of these support levels will be met with massive buying.

Full article here

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