Silver Weekly Technical Outlook

Comex Silver (SI)

Silver edged further high to 41.465 last week but lost momentum again and turned sideway. Initial bias remains neutral this week for some more consolidations below 41.465 but downside is expected to be contained by 38.21 support and bring another rise. Above 41.465 will extend the whole rebound from 32.30 towards 61.8% retracement of 49.82 to 32.30 at 43.125. However, below 38.21 will argue that rise from 32.30 has completed and should flip bias back to the downside for 32.30/33.38 support zone instead.

In the bigger picture, price actions from 49.82 are treated as consolidation pattern in the long term up trend. The first leg from 49.82 should have completed at 32.30 after drawing support from 50% retracement of 14.65 to 49.82 at 32.23. Rise from 32.30 is treated as the second leg and could extend to 61.8% retracement of 49.82 to 32.30 at 43.13 and above. Though, strong resistance is expected below 49.82 and bring reversal. There should be another fall to 32.30 and possibly below before the consolidation from 49.82 completes.

In the long term picture, the steep selloff from 49.82 now raises the possibility that long term up trend from 4.01 is near to completion as it faced strong resistance from 261.8% projection of 4.01 to 21.44 from 8.4 at 54.032. It's still early to confirm long term reversal yet. But an important top should be near, if not at 49.82. Upon confirmation of reversal, silver would likely dive towards 55 months EMA at 20.45.

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