Silver's rebound was limited at 29.865 last week, well below mentioned 38.2% retracement of 37.48 to 26.73 at 30.83 and weakened sharply since that. Consolidation from 26.73 could have completed at 29.865 already and initial bias is mildly on the downside for 26.145/73 support zone. Sustained break there will confirm resumption of whole decline from 37.48. Above 29.865 will delay the bearish case and bring another recovery. But we'd stay bearish as long as 30.83 fibo level holds.
In the bigger picture, price actions from 26.15 should merely be a consolidation pattern only and has completed with three waves to 37.48. Fall from there is tentatively treated as resumption of the medium term decline from 49.82 high and should extend through 26.145 to 61.8% retracement of 8.4 to 49.82 at 24.22 and below. Though, break of 30 psychological will raise the chance of one more rising leg before consolidation from 26.15 completes.
In the long term picture, the main question remains on whether 49.82 is a medium term or long term top. Current development is favoring the latter case. Though, we'd prefer to see sustained break of 61.8% retracement of 8.4 to 49.82 at 24.22 to confirm. Otherwise, price actions from 49.82 could merely be developing into a sideway pattern.
Comex Silver Continuous Contract 4 Hours Chart
http://www.oilngold.com/ong-focus/technical/silver-weekly-technical-outlook-2012060922020/
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