Silver Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 01/15/10

Comex Silver (SI)

Intraday bias in Silver remains neutral for the moment as consolidation from 18.925 might still be in progress. But after all, with 18.055 support intact, another rise is still in favor. Break of 18.925 will target retest on 19.50 high next. However, note that break of 18.055 will indicate that rise from 16.765 has completed and will flip bias back to the downside for this support.

In the bigger picture, the stronger than expected rebound from 16.75 dampens the view that silver has topped out 19.50 and revives the possibility that rise from 12.435 is still in progress. Nevertheless, note that whole medium term rise from 8.4 is is treated as part of the long term, wide range, consolidation pattern that started at 21.44 back in Mar 08. Hence, even in case of another rise, upside is expected to be limited inside this 19.55/21.44 resistance zone and bring another medium term fall. On the downside, break of 16.765 support will revive the case that silver has topped out in medium term and will bring deeper decline towards lower medium term trend line at 14 level.

Comex Silver Continuous Contract 4 Hours and Daily Charts