Chart of the Day – Silver
James Chen from FX Solutions at 12/16/09
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
12/16/2009 – Silver – Price action on spot silver, a daily chart of which is shown, has made a tentative rebound off support around the 17 price region. This occurs on the heels of price falling precipitously after reaching a long-term high around the 19.40 extreme. That high represented the top of a long-term parallel uptrend channel. The fall that occurred after that high was reached was both swift and steep, and ended in a short consolidation before making a turn back up as of Wednesday (12/16/2009). This turn is confirmed by oscillators like the displayed Stochastics, which are indicating a potential emergence up from oversold. To the upside, the next key resistance area resides around the 18 price region, a strong breakout above which price could target a re-test of the top of the noted parallel uptrend channel as well as the aforementioned long-term price high. Downside support within the context of the current bullish turn continues to reside around the 17 price region.
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