The Dec silver contract is approaching expiration as open interest in March is picking up. March silver is now trading $17.195 flat on the day. The most newsworthy development in the past few days is that the U.S. is stepping up its presence in the south China sea. The deployment two of USS Gabrielle Giffords and USS Montgomery sends a signal to Beijing that these high powered advance fleets are capable of countermeasures that China may attempt. Also, with the house potentially passing impeachment and forcing the Senate to hold a hearing could give silver additional lift.
Later today, we will see the COT reading of fund positions in silver. In my view, any break should be bought rather than sold. The only real fear silver traders should have weaker economic readings in major powerhouses around the world.
Technical analysis shows on weekly contact that momentum favors bear camp in the near term; trade needs to close above $18.00 to encounter bear attach.