Comex Silver (SI)
Silver continues to struggle around 34.668 projection level and a temporary top should be in place. Intraday bias is neutral for some consolidations. But downside is expected to be contained by 31.695 cluster support (38.2% retracement of 26.3 to 34.975 at 31.66 and bring another rise. Sustained trading above 36.6 projection level will pave the way to 100% projection of 17.735 to 31.275 from 26.30 at 39.84, which is close to 40 psychological level. Nevertheless, break of 31.695 support will be an early signal of medium term topping and will turn focus back to 26.30 support for confirmation.
In the bigger picture, long term up trend from 8.4 is still in progress. Outlook will now remain bullish as long as 26.30 support holds and current up trend should extend further to 161.8% projection of 4.01 (2001 low) to 21.44 (2008 high) from 8.4 (2008 low) at 36.6. One point to note is that rise from 26.30 could indeed be the fifth wave of a five wave sequence from 14.65 (19.845, 17.735, 31.275, 26.3, ?). Hence we're still cautious on the possibility of reversal after hitting 36.6 projection level. Nevertheless, sustained trading above 36.6 would pave the way to 40 and above.
Comex Silver Continuous Contract 4 Hours Chart
Comex Silver Continuous Contract Daily Chart