Short Squeeze Could Propel Silver Prices Higher
Source: Seeking Alpha, GoldCore (9/7/09)
"Silver has been the star performer over the past couple of weeks. . ."
Silver: Silver has been the star performer over the past couple of weeks, decoupling from gold and bringing the gold/silver ratio down to 60:90. If this continues, a ratio of 55 would provide channel support. Due to the huge move in silver in a short period of time, investors should be aware that there may be profit taking and may need to be consolidation.
The daily momentum in silver is overbought, the first time since June and it is currently at the top of its confluence of resistance which is $16.22/$16.33/oz. These pullbacks should indicate buying points rather than wholesale liquidation as silver looks to continue to push higher, despite short term corrections.
While being overbought there remains the risk of a short squeeze, which could propel silver prices higher.
Platinum Group Metals: Platinum is currently trading at $1,263/oz, palladium is $295/oz, rhodium is $1,500/$1,700/oz.