Comex Silver (SI)

Silver's rebound from 26.30 extended further but still, we're expecting strong resistance at 61.8% retracement of 31.275 to 26.30 at 29.375 to limit upside and bring fall resumption. Below 27.96 minor support will flip bias back to the downside for 26.30 and then medium term retracement level at 26.103 and below. However, sustained trading above 29.375 fibonacci level will turn focus back to 31.275 high instead.

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. Touching and breaking of 38.2% retracement of 17.735 to 31.275 at 26.103 will confirm this case and deeper correction should be seen to 24.98 support and below. Though, we'd expect downside to be contained by 22.84 cluster support (61.8% retracement of 17.735 to 31.275 at 22.907) and bring rebound. On the upside, break of 31.275 high is needed to confirm up trend resumption. Otherwise, we'll stay neutral and expect more consolidation/correction below 31.275.

In the long term picture, silver's up trend from 2001 low of 4.01 is still in progress. We'll stay bullish as long as 21.44 resistance turned support holds and would expect such up trend to extend further to 161.8% projection of 4.01 (2001 low) to 21.44 (2008 high) from 8.4 (2008 low) at 36.6 next.

Comex Silver Continuous Contract 4 Hours Chart

Comex Silver Continuous Contract Daily Chart


Comex Silver Continuous Contract Weekly Chart


Comex Silver Continuous Contract Monthly Chart