Following on from our blog of Thursday questioning whether a squeeze is imminent in the price of silver (see here –http://www.spreadbetmagazine.com/blog/countdown-to-the-great-silver-short-squeeze.html), here is the latest chart.
The picture is becoming more constructive by the day. Key level to break is $20.50, ideally on a 2 consecutive days closing basis. A break of this level will likely have the bears seriously on the back foot and could have us at $24/oz in pretty short order.
We are playing this through the likes of Fresnillo too that have sold off dramatically this last few months as we can see in the chart below. IF silver sees momentum to the upside, the snapback in the likes of FRES & HOC could be dramatic.