Silver has been on an absolutely amazing bull run lately. We outlined our previous views on the possible silver squeeze earlier in our note from June 4th, “Time for Silver”.
Silver has rallied some 13% from the June note, outperforming most assets during this past week.
The longer-term chart of silver is still in a huge consolidation. Note we are approaching some levels where silver could be looking for a first pause. Key is if silver has the momentum to break above this and surprise everybody even more.
We would be inclined to expect a pause soon, but be ready to “chase” it should it resume the trajectory higher.
For the longer term view, the consolidation below is very important.
Most talk about gold and how great it has performed. Gold has been a good performing asset, but silver has managed catching up very quickly lately.
Given the current narrative, both metals have fundamental support, but we would be looking for a little consolation here before any meaningful rally could resume.
Source, charts by Tradingview