4/26/2011 - Silver - Price action on Silver (a daily chart of which is shown) as of Tuesday (4/26/2011) has pulled back and begun a bearish correction after establishing a new all-time high just short of $50, around $49.79. The establishment of this new all-time high can be considered simply a re-test of the previous all-time high around $49.50 which was established back in 1980. Overall, silver's recent rise has been even more dramatic than that of gold. Silver has had a remarkably steep upside run for the past several years, and especially since August of last year, when the bullish trend began accelerating in earnest. The current pullback has more room to move to the downside before potentially continuing the entrenched uptrend. The 38.2% Fibonacci retracement of the most recent major bullish run resides around the 41.00 price region. This level provides a potential downside support target on the current bearish correction. In the event that price action subsequently breaks out above $50 and the new all-time high, thereby confirming a continuation of the prevailing bullish trend, silver could potentially begin its ascent towards $55.

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)