"Uncovering the Silver Squeeze: Jesse Colombo's Expert Analysis on Market Trends"
The Silver Squeeze Has Officially Begun
Source: The Jerusalem Post
Market Breakout Overview
The silver market has recently seen a significant breakout, marking the possible onset of a bull run. Financial analyst Jesse Colombo noted that silver prices surged nearly 7%, surpassing crucial resistance levels, which has led to anticipations of a "silver squeeze."
Key Takeaways
- Silver price closed above $32.50 resistance level.
- Trading volume doubled prior averages.
- Experts predict silver could reach $50 per ounce shortly.
- Strong demand from industrial sectors and decreasing global mine production are bullish factors.
Analysis by Jesse Colombo
Colombo has been optimistic about silver's future, emphasizing that the breakout has been building for months:
- Silver in euros closed above the €30 resistance level.
- Gold prices are showing positive momentum, which supports silver price increases.
- Silver mining stocks have also broken out of their trading ranges.
Potential Short Squeeze
Colombo highlighted a notable net short position held by swap dealers, which could further drive prices up. With their positions equating to approximately 23% of annual global silver production, any increase in silver prices could lead to significant financial losses for these banks.
Conditions for Confirmed Rally
Colombo outlined key conditions that signaled the rally's potential:
- Spot Price Breakout: Closing above $32.50 with high volume was achieved.
- Euro Price Action: Silver exceeded the €30 resistance, closing above €31.
- Synthetic Silver Price Index: It showed a solid gain but needs to surpass its resistance zone.
- Gold Momentum: Gold broke through key resistance levels, supporting silver's growth.
- Copper Price Support: This remains significant for the silver rally.
- Mining Stocks Performance: A close above $36 to $38 for silver mining stocks indicates readiness for breakout.
- Gold-to-Silver Ratio: A drop below 83 to 84 confirmed silver's potential rally.
Market Fundamentals
The underlying fundamentals are favorable for silver, with an increasing industrial demand and declining mine production. The Silver Institute estimates a deficit of 215.3 million troy ounces for 2024, tightening the supply further.
Conclusion
With both technical and fundamental factors aligning, the silver market is poised for significant gains. Colombo concluded that the potential for explosive price increases has never been clearer.
