Technical forecast for Silver

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Silver unable to beat Fibonacci resistance at 20.75/85 where we predicted a selling opportunity. We have so far topped at 20.61 as we start to look overbought short term. Any move towards 20.75/85 therefore allows us to exit longs & try shorts with stops above 21.00.

Yesterday we reached 20.16 where a low for the day was predicted & we used this area for profit taking on shorts & tried small longs here with stops below 20.09. This trade worked perfectly with a low at 20.12. Today’s outlook is more negative so a retest of this level looks likely but we are looking for a break lower to 19.88/78 for a short term buying opportunity.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More