Comex Silver (SI)
Silver’s rally resumes after brief pull back and edges higher to 16.97, meeting mentioned 100% projection of 11.725 to 16.25 from 12.435 at 16.96. Intraday bias will now stay on the upside as long as 16.06 minor support holds. Sustained trading above 16.96 will target next key resistance level at 19.55. On the downside, below 16.06 will argue that a short term top is already in place and bring lengthier consolidation. But after all, downside is expected to 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.
Comex Silver Continuous Contract 4 Hours Chart
Comex Silver Continuous Contract Daily Chart
