| R1 | 33.81 Recent high |
| R2 | 34.425 December high |
| R3 | 35.396 October high |
| R4 | 35.68 |
| R5 | 37.51 February peak |
| S1 | 32.70 UTL |
| S2 | 32.52 |
| S3 | 31.35 |
| S4 | 30.66 November low |
| S5 | 30.22 August 30 low |
| S6 | 29.91 |
| S7 | 26.62 HSL |
BB = Bollinger band
HRL = Horizontal resistance line
SL = Support line
UTL = Up trend line
MACD = Moving average convergence divergence
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Analysis
- This weekly chart shows a broad sideways range. There was solid support around $26.62 and there is strong resistance around $35.70.
- This suggests prices are oscillating sideways while sentiment shifts but the market will probably need a paradigm shift to break out of this range.
- [Outside the technicals - a take-off in industrial demand for the host of new nano-technological applications for silver or a ramp-up in monetarisation of silver as confidence in paper money falters might prove enough to push prices higher; otherwise, on the downside silver might break lower if the bull market for gold ends and ETF redemptions follow in force.]
- Until then we should probably expect more oscillation within the trend. Crucial now will be whether there is an inner sideways trend running between $30.60 and $35.70 or whether support at $30.60 gives way and prices fall back to the floor around $26.60.
- We feel prices are pulling back to consolidate in the short term while the stochastics are falling but the MACD holds up relatively well.
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Conclusion
We remain bullish overall on silver and are looking for a move back towards $35.00-35.40 although prices may need to consolidate for a while in the short term.
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All trades or trading strategies mentioned in the report are hypothetical, for illustration only
and do not constitute trading recommendations.
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