Silver Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 12/02/09

Comex Silver (SI)

Silver's break of 18.935 indicates that recent rally has resumed and at this point, intraday bias will remain on the upside as long as 18.70 minor support holds. Further rally is expected to 19.55/21.44 resistance zone. On the downside, below 18.70 will turn intraday bias neutral and bring retreat. But break of 17.70 support is needed to be the first signal of topping. Otherwise, outlook will remain bullish.

In the bigger picture, the break of 18.935 confirms that medium term rally is still in progress and is set to extend further to19.55/21.44 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