Post-Silvergeddon: Bagholders, Broken Vol, And Bidless

Always

Parabolic moves always end in tears. Back in late January, in Silvergeddon, we flagged the downside risks in silver, writing: “Silver’s super-squeeze is running out of superlatives. Price action now looks more like a meme stock than a ‘serious’ hard asset.” At the time, it was all “fundamentals,” according to the pundits. Now it’s suddenly all psychology and technicals, from the same crowd.

Technically, silver reversed right at the 21-day MA on the bounce and is now taking out the 50-day, printing a nasty down candle as of writing. $72 is the key level to watch. A close below it leaves little meaningful support until much lower, with the 200-day sitting around $50.