Comex Silver (SI)

Silver's rally from 26.30 resumed and is heading to test 31.275 key resistance. As noted before, that we're treating rise from 26.30 as the second leg of consolidation pattern from 31.275. Hence, some resistance should be seen above 31 level and bring another fall to extend the consolidation. Silver should lose upside momentum on the current rise and below 29.635 minor support will flip bias back to the downside for 26.30 support as the third leg of the consolidation starts.

In the bigger picture, note that weekly MACD's stay below signal line suggests that a medium term top is in place at 31.275. Though, current development indicates that price actions from 31.275 are developing into sideway consolidations. As long as 31.275 holds, we'd expect another fall to 38.2% retracement of 17.735 to 31.275 at 26.103 and below to extend the consolidations. Though, downside should be contained above 22.84 cluster support (61.8% retracement of 17.735 to 31.275 at 22.907) and bring rebound.

Comex Silver Continuous Contract 4 Hours Chart

Comex Silver Continuous Contract Daily Chart