Shorts Getting Squeezed And Starting To Panic
The short squeeze in metalscontinues and it appears the shorts are starting to panic. The rally, as goodas it looks, is not very healthy and before it ends, gold could see $1,325 andsilver could see $17.20. That's the funny thing about short covering rallies;they look so good right before they collapse.
Helping the rally has been thepressure in the cryptocurrencies, especially the Bitcoin, which has been underpressure. Now, governments around the globe are trying to set regulations onthe digital space. South Korea is talking about banning the cryptocurrencies,but I don't know how. However, that has brought a little fear to the space andbrought money back to the metals.
We remain long-term bullish andshort-term bearish the metals. As investors, we will hold; as traders, we willtry and capitalize on the expected down move. Our expectations are a test ofthe recent lows as soon as the shorts are squeezed out.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading
Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.