Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Broadcom’s stock jumps on profit beat, stock split

News

Crude oil reverses trend on US data

News

Is Apple’s bull run just getting started?

News

Oracle shares spike despite FQ4 earnings miss

News

EUR/USD plunges after parliament elections

News

Is a big move coming for AMD?

Trends & Analysis
News

Broadcom’s stock jumps on profit beat, stock split

News

Crude oil reverses trend on US data

News

Is Apple’s bull run just getting started?

News

Oracle shares spike despite FQ4 earnings miss

News

EUR/USD plunges after parliament elections

News

Is a big move coming for AMD?

Asset Watch

Is the silver squeeze back?

Tuesday May 21, 2024

It’s déjà vu all over again, as silver’s recent surge evokes memories of 2021. Back then, GameStop and AMC led the meme-stock mania, and the Reddit rebels eventually set their sights on silver. Now, as meme stocks made another comeback last week, is silver’s strength a coincidence?
Phil Streible of Blue Line Futures said, “[Last] week was kind of the recreation of the meme stock. Those speculators naturally look for different areas to exploit, and silver is usually the one that they favour.”
While this iteration of the silver squeeze pushed the white metal to its highest level since February 2013, could the bull market just be getting started, or is this a warning sign of an imminent top?
On the one hand, silver benefited from the CPI slowdown, as weaker inflation hurt the U.S. dollar and increased rate-cut bets. The fundamentals were also supportive, with precious metals benefiting from a more dovish environment. On the other hand, silver must pass a few technical tests to avoid another disappointment.

Silver ended last week above its 2020, 2021, and 2024 highs, so the breakout is constructive. However, it needs to hold the $30 area to ensure that prior resistance has become support.
As such, pay close attention to the 10-week moving average. During the 2020 surge, silver never closed below its 10-week MA, however there was a meaningful breakdown shortly after the 2021 silver squeeze. Therefore, with the 10-week MA providing support during the March and May 2024 corrections, watch the key level to determine if a long position is justified.
So, could silver make a run toward its all-time highs, or have the easy gains already come and gone?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.