Silver posted gains of 5% yesterday, nearly touching $27 at one point
As much as I'd like to believe in the meme crowd, I'm skeptical about how much of a squeeze they can generate in something like silver. Adding to the fact that this supposed “squeeze” is seemingly supportive of large structural positions held in precious metals.
Putting all that aside though, the buzz generated has certainly played a role in getting silver prices higher since US trading yesterday.
There was a quick jump from $25.20 levels to $26.97 at the high before the close settled around $26.50 after having retreated back under $26 briefly prior to that.
While the buzz certainly helped, silver also is starting to gain some traction after having held a defense around its 100-day moving average (red line) in the past few weeks.
The push higher also sees price break above the consolidation top around $25.85 to $26.04 recently and paves the way for a potential move towards testing the early January high @ $27.63-93 region once again.
Adding to the resistance to the topside is the trendline resistance from the August to January highs @ $27.63 as well, so that will be another level to watch.
I've mentioned before that gold and silver retain the same fundamentals and retail traders getting in with this sort of risky behaviour isn't really encouraging as it may serve to distort the fundamentals behind any structural push higher in silver and gold.
But as things stand, it may yet be the case that silver could still go in search of a leg higher amid all the buzz as the charts are also starting to be more supportive of that.