Comex Silver (SI)

Silver's break of 18.28 resistance suggests that choppy fall from 19.48 is finished and further rise should now be seen to upper trend line resistance (now at 19.06) next. On the downside, below 18.075 minor support will turn intraday bias neutral again. But after all, Silver is still bounded in sideway trading inside converging range. Price actions will remain choppy before a breakout from range of 17.08/19.845.

In the bigger picture, note that whole rise from 8.4 is treated as part of the consolidation pattern that started at at 21.44 (2008 high). 19.55/21.44 resistance zone is already met and we'd expect silver to reverse sooner or later. Break of 17.08 support will argue that 19.845 is already the medium term top and focus will then be turned to 14.65 key support for confirmation. On the upside, even in case of another rise, we'd continue expect strong resistance inside 19.55/21.44 resistance zone to bring reversal.

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