R1 | 35.195 High so far |
R2 | 35.67 |
R3 | 37.51 Feb peak |
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 |
(H)SL = (Horizontal) support line
MACD = Moving average convergence divergence
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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.
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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.
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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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