Comex Silver (SI)
Silver falls sharply to as low as 16.08 but is still holding above 16.06 cluster support (38.2% retracement of 13.495 to 17.69 at 16.088) so far. As long as this support holds we’d expect consolidation from 17.69 to be relatively brief. Above 17.045 minor resistance will flip intraday bias back to the upside for retesting 17.69 high first. However, note that decisive 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 instead.
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
