Comex Silver (SI)
With 4 hours MACD crossed below signal line again, intraday outlook in Silver is turned neutral. Nevertheless, further rally is still in favor as long as 16.061 minor support holds. Above 17.015 will target next key resistance at 19.55. However, considering mild bearish divergence conditions in 4 hours MACD and RSI, break of 16.061 will suggest that a short term top is formed after Silver met 100% projection of 11.725 to 16.25 from 12.435 at 16.96. In such case, deeper pull back would probably be seen 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
