Quiet U.S. calendar provides window for possible silver squeeze

前天

A squeeze may be underway in silver with a hammer candle printing on Thursday. Traders took one look at the intersection of uptrend support established in February and horizontal support at $29.66 and baulked, sparking a price reversal often seen around market bottoms.

While indictors such as RSI (14) and MACD continue to provide negative signals, favouring a bearish bias, the price signal hints we may see further upside in the near-term.

$30.80 is the first topside level of note with the 50-day moving average and $32.18 the next after that. Some traders may want to get long now purely on the price signal, but ensure you use a tight stop given a lack of nearby technical levels to use for protection.

Setups with better risk-reward would be to wait for a potential break above $30.80, or a pullback towards uptrend support, allowing for stops to be placed below either level for protection.

With a quiet U.S. economic calendar next week, we're unlikely to receive fresh catalysts to push U.S yields and dollar higher. The vacuum creates a window for a countertrend squeeze. A far less dovish Fed rates outlook has already been priced in.

Good luck!
DS