Chart of the Day – Silver
James Chen from FX Solutions at 11/23/09
11/23/2009 – Silver – Price action on spot silver, a daily chart of which is shown, has reached the very top of a key parallel uptrend channel, in the process hitting a new long-term high (just short of $19). This high at the top of the parallel uptrend channel also coincides with a 161.8% Fibonacci extension of the bullish run from $16.06 to $17.73 early this month. The current bullishness in silver mirrors the phenomenal run that has occurred in gold, as the latter hits progressively higher all-time highs. At the current juncture, a potential impending correction could be due both in silver and gold, with downside support in silver residing around the $18 price region. A clear upside resistance target in the event of further bullishness – as forecasted by the 161.8% Fibonacci extension of the most recent bullish run (from $16.99 to $18.79) – resides around the $20 price region.
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