Comex Silver ( SI )
Silver's sell off extends further to as low as 38.2 so far today and breaks mentioned 61.8% retracement of 33.565 to 49.82 at 39.77 firmly. Intraday bias remains on the downside and deeper decline should now be seen towards medium term retracement level of 38.2% retracement of 14.65 to 49.82 at 36.385. On the upside, above 42.32 is needed to signal short term bottoming. Otherwise, risk will remain on the downside even in case of recovery.
In the bigger picture, the steep selloff from 49.82 indicates that a medium term top is formed there, ahead of 50 psychological level. Silver should now be correcting the whole five wave sequence from 14.65 (19.845, 17.735, 31.275, 26.30). Initial support might be seen at 38.2% retracement of 14.65 to 49.82 at 36.385 and bring rebound. But the correction would likely extend into 26.30/31.275 support zone before completion. Nevertheless, we'd still anticipate a new high above 49.82 before silver makes an important top.
Comex Silver Continuous Contract 4 Hours Chart
Comex Silver Continuous Contract Daily Chart