... [Y]esterday the CME raised the margin requirements for silver from $5,000 to $6,500. While this is being credited with causing the reversal, I don't think it completely explains what happened. It definitely contributed to it but often we grasp at news or reasons for the market's moves when all you need to do is watch the price action itself.
Anyone paying even cursory attention would know the precious metal was already extremely overstretched to the upside and had been sporting extreme bullish sentiment for some time. I outlined just how extreme in late September when silver reached a new 30-year (nominal) high accompanied by a 95% bullish DSI.
Silver managed to shrugged that off and went on a parabolic rise peeking above $29. Personally, I was expecting it to reach the nice, round number $30 before reversing. But it doesn't look like it is going to now.
There is currently a rare technical occurrence in silver...
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