Silver has taken off this morning as the Reddit crew that drove Gamestop to record highs set their sights on the heavily shorted metal.
Prices gapped up in Asia to $29 this morning after a surge in physical buying over the weekend driven by WallStreetBets.
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Silver-mining stocks, coin-selling websites and silver-tracking exchange-traded funds jump across Asia as prices of commodity continue to rally
Silver, both a safe-haven asset and an industrial metal, has risen nearly 15% since Thursday
Silver closed above the upper band by 14.8%. Although prices have broken the upper band and an upside breakout is possible, the most likely scenario is for the current trading range that Silver is in to continue.
Making the picture somewhat unclear is the fact that Bollinger Bands are 9.86% wider than normal. The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.
The recent price action around the bands compared to the action of the Relative Strength Index (RSI) does not suggest any trading opportunities at this time.
Candlesticks Suggest More Gains
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
