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ONG Focus | Technical | Written by Oil N' Gold | Sat Aug 28 10 02:34 ET

Silver Weekly Technical Outlook

Comex Silver (SI)

Silver jumped to as high as 19.34 last week and the break of the upper rising trend line resistance argues that recent consolidation from 19.845 is finished already. Though, some resistance was seen ahead of 19.48 and with 4 hours MACD crossed below signal line, a temporary top should be formed. Initial bias is neutral this week and we might seen some retreat to 4 hours 55 EMA first. Though, downside is expected to be contained well above 17.735 support and bring another rise. Decisive break of 19.845 will indicate that medium term rally is likely resuming for another high above 19.845.

In the bigger picture, note that whole rise from 8.4 is treated as part of the consolidation pattern that started at at 21.44 (2008 high). 19.55/21.44 resistance zone is already met and we'd expect silver to reverse sooner or later. Break of 17.325 support will argue that 19.845 is already the medium term top and focus will then be turned to 14.65 key support for confirmation. On the upside, even in case of another rise, we'd continue expect strong resistance inside 19.55/21.44 resistance zone to bring reversal.

In the longer term picture, the up trend from 01 low of 4.01 topped out at 21.44 and subsequent price actions are treated as correction/consolidation to this up trend. Fall from 21.44 completed after drawing support form 8.5 key level. However, subsequent rally from 8.4 is not displaying a clear impulsive structure and hence, we'd prefer the case that it's just the second wave of the wide range consolidation pattern. Another medium term fall should still be seen for retesting 8.5 before completing the consolidation. Nevertheless, strong support is still expected at 5.45/8.5 support zone to conclude the consolidation.

Comex Silver Continuous Contract 4 Hours Chart

Comex Silver Continuous Contract Daily Chart

Comex Silver Continuous Contract Weekly Chart

Comex Silver Continuous Contract Monthly Chart


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