Can The Silver ETF Follow Meme Stocks Higher?
Michele Schneider | Mar 24, 2022 12:27AM ET
Though it’s easy to forget about meme stock as they’ve been out of focus for a while, the big two have made a comeback over their 50-Day moving average.
GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), as seen in the below chart, cleared their 50-DMA on Tuesday and have continued to push higher.
However, their moves have become tough to trade as they have quickly broken away from their support areas. Even taking trades with risk underneath their 50-DMA could be giving them too much space.
Using them for active trades based on intra-day support and resistance levels is the way to go if you’re not already in these symbols. With that said, it is interesting to note their buildup in strength since the market pulled off on Wednesday.
Additionally, while meme stocks have become hot again, the precious metals could also be looking for another pop higher. So far, the indices have made a minor pullback from the recent price run. However, if prices are going to continue upwards, the 50-DMA will need to hold.
Currently, only the Dow Jones (DIA) has broken under its key moving average. If the other indices begin to follow DIA, their decline could boost precious metals which perked up on Wednesday.
We are especially interested in iShares Silver Trust (NYSE:SLV) which has held over its recent low of $22.60. Now SLV could be gearing up for another move if the other indices begin to break their 50-DMA.
h2 ETF Summary/h2- S&P 500 (SPY) 446 to hold.
- Russell 2000 (IWM) 209 to clear. 201 minor support.
- Dow (DIA) Broke the 50-DMA at 344.
- NASDAQ (QQQ) 350 to hold. The 50-DMA.
- KRE (Regional Banks) 69.28 the 200-DMA.
- SMH (Semiconductors) 273.69 resistance.
- IYT (Transportation) 270.60 resistance.
- IBB (Biotechnology) Needs to get back over the 50-DMA at 128.50 or could easily break down towards 120.
- XRT (Retail) 80 resistance.
- GLD (Gold) Closed over the 10-DMA at 181.47.
- USO (Oil) 75 support area.
- DBA (Agriculture) 21.63 support.
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