Silver made a violent move last summer when it broke a six-year resistance level. Prices have consolidated since but now the bulls may be returning.
Notice how XAGUSD probed and held its 200-day simple moving average (SMA) in late March and the first half of April. This was the first test of the 200-day SMA since May.
Second, prices have broken a short-term bearish trend line running along the peaks of February and late March. They’re now trying to break roughly $25.75 - $26.50, a consolidation zone from mid-March.
Third, Bollinger Bandwidth has turned up after falling near 7 percent. This has been a floor for the range of motion. That could help fuel a move if the price action starts to expand.
There’s also a catalyst next week with the Federal Reserve meeting on Wednesday.
The white metal is a strange product overall, with flashes of excitement and long periods of boredom. It’s been inert for months, but now the price action could be pointing toward another period of quicker movement.
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Looks like a nice little cup and handle with the latest consolidation being the handle part of the chart. What's interesting is that the XAUUSD (Gold vs. Silver) is carrying out the same pattern. Best guess is that inflation will continue to rise and so will these stores of value.
ZoharCho
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@LauJ138, Agree, just to me it looks like a triangle pattern. But it doesn't really matter because the result is the same... UP
tannerroberts61
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the squeeze has not be squooze, GME to the moon!
mgerhard77
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@tannerroberts61, feels like it did a couple months ago when they pushed silver to get us away from GME...
reec0306
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@mgerhard77, this silver squeeze has been in the works for a while, it’s why the shills used it. Problem was you guys bought SLV (JP Morgan) and put no strain on the physical market. You only drove the spot price up for a day and they flooded the market with paper silver bringing the price down making even more money as they shorted it.
There is evidence beginning to mount on a potential physical shortage of silver. The divergence between spot price and physical is getting larger premiums are 10-20% higher again for numismatics and article’s such as this one start to support what are for now only theories.
The key to this squeeze is the physical market either buy physical silver or if you can’t then PSLV a silver backed etf. I would warn against SLV as it is unclear if they actually hold the silver.
reec0306
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Physical or PSLV only
Tradersweekly
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@reec0306, I think it will go up, there are many more good reasons why. I feel like short squeeze has been talked about for long time now.
ZEUS8869
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era of manipulation might be on its way out, silver is highly manipulated imo, some tend to agree: youtube.com/watch?v=xnPqSKA9PHU