Comex Silver (SI)
Silver rose sharply together with other precious metals last week and reached as high as 16.40 last week, breaking prior high of 16.25. Initial bias remains on the upside and further rally should be seen to 100% projection of 11.725 to 16.25 from 12.435 at 16.96 next. On the downside,below 15.83 minor support will turn intraday outlook neutral and bring some retreat, but downside should be contained above 14.54 support and bring rally resumption.
In the bigger picture, the break of 16.25 resistance confirms that whole medium term rise from 8.4 has resumed. Further rally could now be seen towards next key resistance level at 19.55. Nevertheless, we’re not seeing a clear impulsive structure from 8.4 yet and hence, we’d treat such rise as part of the long term, wide range, consolidation pattern that started at 21.44 back in Mar 08. In other words, current rise from 8.4 is expected to be limited by 19.55/21.44 resistance zone and bring at least one more medium term fall. On the downside, break of 12.435 support is needed to confirm that rise from 8.4 has completed. Otherwise, medium term outlook will remain bullish even in case of deep pullback.
In the longer term picture, the up trend from 01 low of 4.01 topped out at 21.44 and subsequent price actions are treated as correction/consolidation to this up trend. Fall from 21.44 completed after drawing support form 8.5 key level. However, subsequent rally from 8.4 is not displaying a clear impulsive structure yet and hence, we’d prefer the case that it’s just the second of the wide range consolidation pattern. Another fall should still be seen for retesting 8.5 before completing the consolidation. Nevertheless, strong support is still expected at 5.45/8.5 support zone to conclude the consolidation.
Comex Silver Continuous Contract 4 Hours Chart
Comex Silver Continuous Contract Daily Chart
Comex Silver Continuous Contract Weekly Chart
Comex Silver Continuous Contract Monthly Chart
