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Chart of the Day - 10/02/2009 – Silver

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

10/02/2009 – Silver – Price action on silver, a daily chart of which is shown, has retreated from the long-term high of 17.625 (hit in mid-September), and has since been adhering closely to a steep downtrend resistance line. This all occurs within the context of a long-term parallel uptrend channel. The noted 17.625 high approached the top of the channel before correcting back down. Currently, price has consolidated just above the general 16.000 support/resistance region. Any strong bearish price move that breaks down significantly below this 16.000 support should target further support in the 15.000 price region. A bullish move that breaks out above the steep downtrend resistance line could potentially shoot for a re-test of the 17.625 high, and possibly approach the top of the parallel uptrend channel once again.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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