Otmane El Rhazi from
The Bullion Desk.
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| Short Term: |
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| Medium Term: |
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| Long Term: |
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| R1 |
15.29 March low |
| R2 |
15.60 Steep DTL |
| R3 |
15.87 |
| R4 |
16.00 |
| S1 |
15.60 April low |
| S2 |
14.68 Low so far |
| S3 |
14.66 2010 low |
| S4 |
14.65 December low |
| S5 |
13.51 Long term SL |
Legend:
BB - Bollinger band
MACD - Moving average convergence divergence
U/DTL - Up/down trend line
SL = Support line$15.60
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Analysis
- This monthly chart shows prices have once again found support around $14.65, which was the pullback low in 2010 during the early days of the rally towards $50. (It was the spike low following the Swiss referendum on its central bank gold holdings.)
- A dollar, or so below there, at $13.51 is the long-term SL.
- Prices are rebounding today – the steep DTL on the daily chart (not shown) is at $15.60 and above there there is a wall of supply up to $16.00 and another up to $16.30.
- The stochastics on the daily chart have turned bullish so we would look for prices to work higher now.
Conclusion
Silver prices have been weak and vulnerable. We take some support from the fact the $14.65 area held. We would look for this rebound to run further – the market looks oversold and we feel there is room for short-covering.
The net long fund position on Comex is just 9,881 lots. The market is polarised, with 71,886 lots of gross longs and 62,005 gross shorts – the gross short position is the highest we have on our record, which started in 2005.
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All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.
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The post Technical Analysis – Silver – Support from 2010 and 2014 holds at around $14.65 appeared first on The Bullion Desk.
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