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ONG Focus | Technical | Written by Oil N' Gold | Sat May 28 16 10:41 ET

Silver Weekly Technical Outlook

Comex Silver (SI)

Silver's pull back from 18.08 extended lower last week but it started to lose momentum after hitting 55 days EMA, 38.2% retracement of 13.62 to 18.06 and 16.17 resistance turned support. A rebound is likely due and break of 16.58 resistance will turn focus back to 18.08 high. However, downside acceleration form the current point will carry larger bearish implication and target 61.8% retracement at 15.31 at least.

In the bigger picture, the strong break of 55 weeks EMA affirmed our view that 13.62 is a medium term bottom. Further rise should be seen to 55 months EMA (now at 19.31 next). Sustained break there will target 38.2% retracement of 49.82 to 13.62 at 27.44 in medium term. This is the preferred case as long as 16.17 resistance turned support holds. However, break of 16.17 will indicate that silver has found the upper side of its medium term range at around 18.185 resistance and will head back towards 13.62 low instead.

The down trend from 49.82 could have finished at 13.62 already. At this point, we're not seeing any prospect for long term up trend yet. Silver could turn into sideway pattern between 13.62 and 38.2% retracement of 49.82 to 13.62 at 27.44. We'll continue to monitor the structure of the rise from 13.62 to determine the long term outlook.

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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