Silver dropped today while Markets continue to go up despite warnings of recession. Currently Silver SLV has 50 million in open short interest according to fintel.com Nearly 69.33 percent dark pool volume ratio from off exchange. SLV – Short Interest – iShares Silver Trust Stock – Short Squeeze, Borrow Rates (fintel.io)

Could this set up a silver short squeeze?

We think it’s very possible that a short squeeze could happen again for silver like it did in 2020 during the pandemic When the reddit boys took control of slv where it reached nearly $28 per share. However, it will take a lot of money to squeeze hedge funds out of this one and with Spy and other ETFs doing well, today investors may be reluctant to get into an investment like SLV. If you look at the chart below the shorts got busy all morning before a bounce at the 3rd support at 21.39. 21.52, 21.62, 21..85 will now work as resistance levels since SLV broke through 2 supports on the daily chart.

Can Silver still make a move?

Yes, silver can still make a move to the upside depending on if these support levels hold. With the high short percentage though it will take more volume for slv to move. If volume comes in it can cause a short squeeze possibly trapping shorts and forcing them to buy in which will cause the stock price to rise. So far economically nothing has broken yet, and with markets up people still believe everything is intact despite economic warnings. If something breaks expect for metals to really take off. Remember we saw crypto fall apart at the seams People had faith in companies like FTX thinking their funds were safe. Imagine if something of similar stature happened with banks, with debt defaults. Though it may be unlikely it’s definitely not impossible.

Check out our other posts: Record COMEX Silver Withdrawals & Bullion Demand – Cranes Financial News

Disclaimer:

we are not investment advisors, nor do we claim to be. Investing may result in the loss of your entire investment. These are opinions and should be viewed as such.