(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
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.