silver ready to rocket higher

Public opinion (sentiment) at extremely depressed levels.

RSI on weekly chart last week reached record oversold for entire bull market.

Price recently found support just above $26 level forming triple bottom.

Price has broken above short term down trend resistance at around $28.

Monthly chart shows a flag pattern.

Poor sentiment on many forums that I frequent, almost more talk about downside break of $26 than potential for strong rally.

Commercial short positions as percent of total open interest at low levels not seen since 2001 when Silver was $4.

Managed Money short position in Silver at record high levels (potential for massive short covering).

Most signs are pointing to the price being at an important bottom which will likely be seen much like the $9 low in late 2008.

More here and here.

In my opinion the trigger for the start of an explosive rally higher (which will take Silver to $40+ over coming months) will be one of 3 events we have over the next two nights:

- ECB rate decision (potentially reduced by 25 points)
- BOE expected to announce new stimulus package
- Poor Unemployment % could fuel QE speculation in US

Should we see one or more of this playout as expected then it's potentially RISK ON and Silver is primed to soar.

Hold onto your hats!