AUSTIN, Texas, April 16, 2015 /PRNewswire/ -- Popular financial analyst and commentator Craig Hemke of TF Metals Report, who correctly called the 2014 bottom in gold and silver prices, is now forecasting an imminent rise in the price of silver.
By closely monitoring changes to the total open interest on the Comex silver exchange in New York, Hemke has concluded that another rapid price rise or "short squeeze" is likely in the days ahead.
"The conclusion is quite clear," Hemke explains, "the risk in silver is not to the downside with a drop through $15.50. Instead, the risk is being taken by the Spec shorts. They are being set up once again for an epic squeeze. This move is not yet imminent and it may be timed for the next FOMC meeting later this month."
Earlier in 2015, Hemke boldly proclaimed a bottom in silver prices for this recent bear market and is on the record forecasting higher prices in 2015 and beyond.
"Once silver finally posts a weekly close above the old $18.20 floor, it will rapidly move towards $20," predicts Hemke. He says that traders can expect significant "psychological, round number resistance" there.
But he also predicts that the new bull market won't be limited to just 30% and back to $20. Once $20 is bested, the next major test will be $22, the low established in the wee hours of April 16, 2013. Once the price finally recovers through $22, the goal becomes $26 and exceeding the floor from the September 2011 selloff.
"Of course, none of this is going to be easy, and it is quite unlikely that price ramps back up as quickly as most of us would like," Hemke cautions. "Just a move back to $22 by year end would constitute a 40% move for 2015. That's pretty dramatic, and it's only to $22, so don't go expecting too much too fast."
In the short-term, however, Hemke is more concerned with another rapid, short-covering price squeeze. He concludes: "Could another squeeze and panic develop, similar in size and scope to March when prices rose 13% in just six days? Certainly. And could you profit from this move? Absolutely! Those confident enough to take a contrarian stand against the momentum-and-headline chasing Specs will very likely be richly rewarded. These profits can then be used to acquire additional physical metal to add to your stack in preparation for the eventual end of The Great Keynesian Experiment."
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SOURCE Craig Hemke