Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

Silver Holds Above Key Support Around 19.00

Support: Silver ended the week with a strong bounce off the 19.00 handle as seen in the 4H chart. The 4H candle that bounced off 19 is the strongest in a while, at least since it retreated from the 22.00 handle in February. This strong price action reflects strong support around 19.00.

(silver 4H chart, 4/27)

More bullish clues needed:
Despite this strong rebound, we need to see a couple more things happen before we can say that silver is no longer bearish. 
1) The 4H RSI should push above 60, preferably above 70
2) Price needs to break above 20.40 resistance and April high.

Support pivots: The daily chart shows the previous price action supported at 19, down to 18.20, the 2013 low. This support is that of a consolidation/congestion since June 2013, which followed a bearish trend since the start of 2011.

(silver Daily chart, 4/27)

Resistance pivots:
The daily chart also shows the multiple resistance at 20.40, up to about 20.45. A break above this opens up the 22.00 handle. Above 22.00, we can say silver is turning bullish. Otherwise, it is neutral with a prevailing bearish bias.

Bullish within neutral:
Even though there is a short-term bullish cycle developing, as suggested by the oscillators, the upswing will be within the context of consolidation in the medium term.