Silver’s Breakout Does not Look Successful; 36.80 is Key Pivot

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Simple Moving Average( SMA ) 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

Multiple Time-frame Analysis

Silver Bounces from 36.50, 37.20 is Key Resistance Pivot (3/28)

Silver (XAG/USD)
Silver 3/30/2011
Short to Medium Term
- Silver rallied above the 37.20 pivot, but was not able to hang on the gains as we entered into the US session. The market turned at 37.70 (near 78.6% retracement) and has broken back below the 37.20 pivot.
- The market still has a chance to rally, but the candlestick action suggests a failed breakout. The failure to push the RSI above 70 suggests a lack of bullish momentum.
- If the market breaks below 36.80 , we would have invalidated the breakout.
- The 36.40 pivot holds the current support, and if broken opens the decline towards 50% retracement at 35.85 , or 61.8% retracement at 35.30 area.
- However, if the market is able to break back above 38.10 pivot, we are heading towards 38.70 , and possibly 39.85 suggested by the swing projections seen in the daily chart.
Silver 3/30/2011 4H and Daily Charts


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

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