Don't know about predicting shorts action. But if it stays above the falling wedge top line a bottom bounce play may be at hand. Remember you should have waited for first resistance to be broken. That was at $9.00. Early again. Caution, you really want to be sure retail is behind a bottom bounce, before you enter.
Especially if there may be a battle, with large short position stocks. That cover you THINK should happen, just may become a battle for direction. And shorts usually win battles, when stocks don't have confirmed retail conviction. Resistance break is the first sign of this conviction and volume is second. No increasing volumes in a resistance break?
Need to stop thinking the world thinks like you. And wait to be sure, before buying. IMO Being early only works at the dinner table. Early to a race doesn't help. You still need to run it.
Silver Shorts Cover Nearly Half Their Position In One Week The cover in silver may be weak, because it's mostly done.
Most analysts expected the commercial shorts to be broken in a short squeeze, likely launching silver above $100. However, this short squeeze will not occur.
In September 2010 these traders began to aggressively cover their short positions. Since then, commercial net short positions in silver have been reduced from over 65,000 contracts to 24,262 as of September 27, 2011 - and falling from 40,708 just one week earlier.
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