Along with gold, silver has been reacting to the rise in stock markets and the short term strength in the oil price. Similarly the silver chart is also forming into a “pennant” but unlike gold the 9 and 40 day moving averages have already crossed giving a bullish signal. With the same logic applied an upside breakout will technically point to a $1.80 move pointing to a test of the early October highs at close to $12.50. Markets are expected to be “thin” today due to the Thanksgiving holiday and profit taking ahead of the weekend could push Silver down toward the 9 and 14 day moving averages $0.50 below current levels. The short term trend is up while the medium and long term trends are bearish.
Support: $10.150 (yesterdays low) Resistance: $10.797 (high of 6th November)
Support: $10.048 (40 day moving average) Resistance: $10.680 (high of 24th November)
Support: $9.728 (14 day moving average) Resistance: $10.472 (yesterday’s high)