Comex Silver (SI)
Break of 17.17 minor support, with 4 hours MACD crossed below signal line indicates that an intraday top is formed. Also, considering bearish divergence conditions in 4 hours MACD and RSI, a short term top is likely in place at 17.69 too. Intraday outlook is turned neutral for the moment and some more consolidation could now be seen but downside should be contained by 16.06 cluster support (38.2% retracement of 13.495 to 17.69 at 16.088). ABove 17.69 will target 19.55 resistance next. However, break of 16.06 will indicate that whole rise from 12.435 might have completed too and will bring deeper pull back to 13.495/15.185 support zone.
In the bigger picture, whole medium term rise from 8.4 is still in progress and could probably continue 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
