Silver price is down by more than 1% today, erasing some of the gains made yesterday when it soared by more than 5%. The precious and industrial metal is trading at $6.23, which is lower than yesterday’s high of $27.
What happened: WallStreetBets, a Reddit channel, has made headlines this week after it prompted a sudden rally in some weird assets. For example, this week, GameStop shares have jumped by more than 600%, valuing the company at more than $13 billion. In reality, its business is barely surviving as more people shift to game streaming.
Similarly, Bed, Bath, and Beyond shares have jumped by more than 37% in the past five days valuing it at more than $4 billion. In reality. BBBY is a struggling retailer.
WallStreetBets traders also managed to push Dogecoin, a bizarre cryptocurrency that has become the 7th biggest in the world.
Meanwhile, silver price soared yesterday when the metal became a target for these traders. Historically, silver has been more volatile commodity because of its cheaper price compared to gold.
Silver technical outlook
It’s a bit tough to analyse silver during a period of intense irrational exuberance. In such periods, anything can happen. Still, looking at the daily chart, we can see the key points of interest. On the upper side, there is $27.88, which is the highest point on January 6.
This price is about 6% above the current level. If bulls manage to push it above this resistance, it will bring last year’s high of $29.8 to view. The other point of interest is $24, which is along the ascending trendline shown in blue. If it moves below this price, it will bring $20 to view.
Silver Price Chart