Comex Silver ( SI )
Silver's pull back from 49.82 extended further to as low as 40.46 so far before recovering mildly. While another fall might be seen, we'd continue to expect strong support from 61.8% retracement of 33.565 to 49.82 at 39.77 to contain downside and bring rebound. On the upside, break of 49.82 resistance is now needed to confirm rally resumption. Otherwise, we'll stay neutral and expect more corrective trading in near term. However, note that sustained trading below 40 psychological level will now put 33.565 support back into focus.
In the bigger picture, long term up trend in silver is still in progress and current rally will likely extend through 50 psychological level to next long term projection target of 261.8% projection of 4.01 (2001 low) to 21.44 (2008 high) from 8.4 (2008 low) at 54.03. On the downside, sustained trading below 55 days EMA (now at 38.921) is needed to be the first signal of medium term reversal. Otherwise, outlook will remain bullish.
Comex Silver Continuous Contract 4 Hours Chart
Comex Silver Continuous Contract Daily Chart