Silver Daily Technical Outlook

ONG Focus | Technical | Written by Oil N' Gold | Wed Nov 17 10 07:12 ET

At this point, silver is trying to draw support from the near term rising trend line and we'll turn neutral first. As noted before, while the fall from 29.34 was deep, it's treated as a correction only and is expected to be contained by 24.95 cluster support (38.2% retracement of 17.735 to 29.34 at 24.907) and bring rally resumption. Above 26.48 will flip intraday bias back to the upside for a retest on 29.34 high first. However, decisive break of 24.907 will argue that whole rise form 17.735 is finished and will bring deeper fall to 55 days EMA (now at 23.4) next.

In the bigger picture, silver's up trend is still intact. Current rally from 8.4 is treated as resumption of the whole rise from 2001 low of 4.01. On resumption, silver should target next projection level of 261.8% projection of 14.65 to 19.845 from 17.735 at 31.34. On the downside, break of 20 psychological level is needed to signal medium term reversal. Otherwise, outlook will remain bullish.

Comex Silver Continuous Contract 4 Hours Chart

Comex Silver Continuous Contract Daily Chart

 

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