Silver Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/26/09

Comex Silver (SI)

Silver's consolidation from 18.935 is still in progress and further sideway trading could still be seen. But after all, recent short term outlook will remain bullish as long as 18.035 support holds. Recent rise is still expected to extend further towards 19.55/21.55 resistance zone next. On the downside, touching of 18.035 will suggest that a short term top is in place and bring longer consolidations. But still, downside should be contained above 17.025 support and bring rally resumption.

In the bigger picture, whole medium term rebound from 8.4 is still in progress 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 Charts