Silver Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 02/10/10

Comex Silver (SI)

Silver's recovery from 14.65 is still in progress and further rise cannot be ruled out. But still, upside is expected to be limited by 16.015 resistance and bring fall resumption. Below 15.0 minor support will flip intraday bias back to the downside for medium term trend line support at 14.2 level. Decisive break there will indicate that downside momentum is still strong and should set the stage for 12.435 key support next.

In the bigger picture, silver's medium term rise from 8.4 has possibly completed at 19.50 already, after just missing mentioned 19.55/21.44 resistance zone. As noted before, such rise is viewed as part of the long term, wide range, consolidation pattern that started at 21.44 back in Mar 08. Fall from 19.50 is possibly the third leg of such consolidation pattern. We'd expect such fall to extend beyond 12.435 support to confirm this case and target a new low below 8.4 eventually. On the upside, above 16.765 support turned resistance is now needed to invalidate this view. Otherwise, outlook will remain bearish.

Comex Silver Continuous Contract 4 Hours and Daily Charts