Silver Technical Analysis – Techs to Watch After Short Squeeze Fizzles
Silver price takes a big hit after new high
The Reddit-led short squeeze in silver was far less dramatic than it was in GME, but it is a major commodity and not a small stock with 140% of its float short, so it makes sense. Normal trading may have already resumed. The August high at 29.86 runs in confluence with a parallel derived from the March trend-line. The area around 30 is a formidable one as resistance for now. The March trend-line looks to be a solid line of support around the ~25.40 level. The general trend is higher, making longs at support a potentially attractive risk/reward opportunity.
Silver Daily Chart (support/resistance to watch)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.