Silver Loses Momentum after Double Top; 29.60 is Key Support


Simple Moving Average( SMA ) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.

Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance

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Gold and Silver Update 2/11 - Stalking Bearish Attempts

Silver (XAG/USD)
Silver 1H Chart 2/16/2011

- Silver is sliding sharply today in the US session after forming a double top. The decline from that has already materialized, and the bullish momentum has been technically violated. The RSI plunged below 40, reflecting a loss of the bullish momentum. A break below 30 suggests bearish momentum.
- Testing 30.25 minor pivot, a break below this is looking at the 29.60-29.65 support. A break below this as we see in the 4H chart, opens up the possibility of a decline back to 26.55 .
- If we get a pullback, a good confirmation for the short-term bearish scenario is a failure to rally above the 30.65 area.
-The 4H chart shows a strong bearish attempt to start the US session, following through a bearish divergence.
- If this decline breaks below the current 30.25 pivot but  fails to break below the 29.60 pivot, and the RSI stays above 40, we should have another rally, which at least test the 30.35 area, but could also rally back to test the 30.70 high.

Silver 4H Chart 2/16/2011

Will this bearish attempt in silver be meaningful, or is it just a minor corrective decline? We would love to hear what you think.

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This article appears in: Investing , Commodities

Referenced Stocks: SMA

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