Profit_Link

Silver - Quarterly Squeeze Set to Fire

Long
COMEX:SI1!   Silver Futures
A squeeze is a period of consolidation prior to a move (usually explosive) in a particular direction.


As you can see, Silver is currently in the beginning stages of firing a quarterly squeeze, this is extremely important as it a strong indicator of the macro environment that we are heading into, namely, one with very high inflation expectations.

This is not surprising given the gargantuan fiscal and monetary spending that has come as a result of the global lockdown.

With this in mind, it is not at all unexpected to see the recent surge in the precious metal.

I believe that we could see this current rally continue all the way up to around $26 USD/ ounce, this coincides with the 38.2% fib retracement and would also mark the last major resistance for silver before working up to $35 and eventually the prior ATH at around $50


I am personally waiting for a bit of an ease prior to entering, as i don't want to chase the move, and i am already well situated for a move higher, should it continue unabated.

For reference, this is the prior quarterly squeeze that fired on Silver .


This is the current quarterly squeeze that fired in Gold .


Do with that information as you will...


- TradingEdge

Comments

yes a squeeze is on now. We'll see big dips on witching days or big moved down
in Futures markets as SLV / XAGUSD sellers will need to raise $ for margin calls.

Otherwise the trend is $50 silver by 2021

Look at the daily Renko trend?
+1 Reply
Lol, shortly after posting that comment it took a dive. to late to tp, but still very much in profit :)
+1 Reply
Profit_Link Crypt1cLyfe
@Crypt1cLyfe, Glad to hear it, i am not surprised that some profit taking is occurring, it should set up the next leg higher quite nicely.
Reply
Sitting at the .382 right now, wondering if I should tp or add xD
+1 Reply
Profit_Link Crypt1cLyfe
@Crypt1cLyfe, It depends on what the intention of the position is, if it is physical, then i would hold, if it is just a shorter-term trade, then reducing your position to be a riskless trade would be my suggestion.
Reply
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