Technical Analysis - Silver - Still encountering overhead resistance

William Adamswilliam.adams@fastmarkets.comHead of Research+44 (0)20 7264 2489

Short term:
Medium term:
Long term:

Resistances:
R1	35.195 High so far
R2	35.67
R3	37.51 Feb peak

Support:
S1	33.34 Recent low
S2	33.25 HSL (daily)
S3	33.14 SL
S4	32.48 Recent low
S5	30.22 Aug 30 low
S6	29.91

Stochastics:
Crosses higher

Legend:
BB = Bollinger band (H)SL = (Horizontal) support line MACD = Moving average convergence divergence

Analysis

Silver's rally reached $35.396 yesterday, overcoming the previous peak at $35.195, but prices struggled to hold onto gains.
Prices have generally held up relatively well during the recent consolidation, especially while the technical indicators on the daily chart were falling fast.
The stochastics crossed higher again on Thursday, however, and struggled on Friday and intraday yesterday but are now pointing higher again.
The move above the recent high bodes well although the overhead tail implies there was scale-up selling around.
We see resistance around $35.66-35.68 - clearance of that area would open the gate for a challenge of the February peak at $37.51.

The FULL REPORT IS AVAILABLE TO SUBSCRIBERS

Conclusion

We have been bullish for silver in the medium term since mid-August. We have viewed the recent pause as a bout of consolidation and now feel that prices are well placed to advance again, although they seem in no hurry to do so for now.

All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.

Fastmarkets.com
mailto:press@fastmarkets.com
8 Bouverie Street, London, EC4Y 8AX, UK
+44 (0)845 241 9949

TERMS AND CONDITIONS

The Terms and Conditions for this service are here.

REPRESENTATIONS AND LIABILITY

Fastmarkets represents that:
1. It will supply the Services in a professional way, using the care that can be reasonably expected for this type of business, and in accordance with the practices and policies which are commonly applicable in the information services industry.
2. it is duly empowered to supply the Information and Service(s) to the Client for the purposes specified in this Agreement and that the Service(s) and its use by the Client as specified in this Agreement will not infringe any intellectual property rights of any third party.
Although Fastmarkets will use all reasonable endeavours to ensure the accuracy and reliability of the Services, neither Fastmarkets, the Data Sources, or any third-party provider will be liable to the Client (or any third party) for direct, indirect or consequential loss or damage, including but not limited to loss of data, trading or other economic losses, arising out of any reliance on the accuracy of the Information (including but not limited to data, news and opinions) contained in the Service(s) or resulting in any way from the supply (or failure of supply) of the Services. However, Fastmarkets accepts liability for physical loss or damage to the Site caused by its negligence or wilful misconduct.
Except as expressly stated in this agreement, all express or implied conditions, warranties or undertakings, whether oral or in writing, in law or in fact, including warranties as to satisfactory quality and fitness for a particular purpose, are excluded.
The Client will indemnify Fastmarkets against any loss, damage or cost in connection with any claim or action that may be brought by any third party against Fastmarkets relating to any misuse of the Services by the Client.
To the extent permitted by law, under no circumstances will Fastmarkets liability under this Agreement exceed the Service Fees paid to Fastmarkets by the Client, regardless of the cause or form of action.

PRIVACY POLICY

The Fastmarkets Ltd Privacy Policy is here.