Silver Daily Technical Outlook

Comex Silver (SI)

With 4 hours MACD crossed below signal line, Silver's recovery from 17.49 might have completed at 18.42 already. Intraday bias is turned neutral for the moment. Break of 17.845 minor support will affirm this case and flip intraday bias back to the downside for 17.49 and possibly below. Also, note that sustained trading below near term trend line support, now at 17.5 will argue that whole rise from 14.65 has finished too and will turn focus to 16.55/62 support zone (50% retracement of 14.65 to 18.605 at 16.62) for confirmation. On the upside, above 18.42 will bring another rise. But after all, we'd expect upside to be limited by 18.605 resistance and bring another fall.

In the bigger picture, note that at this point, there is no clear confirmation that medium term rally from 8.4 is finished yet. However, such rally is viewed as part of the consolidation patter that start at 21.44 (2008 high). Hence, even in case of a new high above 19.50, we'd continue to look for reversal signal as silver enters into 19.55/21.44 resistance zone. On the downside, sustained break of 16.55 support, will in turn revive the case that 19.50 is already the medium term top and will turn focus to 14.65 key support level for confirmation.

Comex Silver Continuous Contract 4 Hours Chart 

Comex Silver Continuous Contract Daily Chart