Silver Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/17/09

Comex Silver (SI)

Silver rises to as high as 18.45 before retreating mildly and the break of 18.175 resistance indicates that whole rally from 12.435 has resumed. At this point, intraday bias remains on the upside as long as 17.93 minor support holds. Further rally should be seen towards 19.55/21.44 resistance zone next. On the downside, below 17.93 will bring consolidations but downside should be contained above 17.025 support and bring rally resumption.

In the bigger picture, whole medium term rebound from 8.4 has resumed and should now be targeting 19.55/21.55 resistance zone. But after all, rise from 8.4 is treated as part of the long term, wide range, consolidation pattern that started at 21.44 back in Mar 08. Hence, 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 16.12 will now be an important signal that silver has topped out in medium term already and will turn outlook bearish.

Comex Silver Continuous Contract 4 Hours and Daily Chart