Technical forecast for Silver

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Silver reached resistance at 24.79/80 but we did try a break above 25.00. This was not helpful but none the less we quickly rejected these highs. We warned this week that Fibonacci resistance at 24.80 could mark the end of the rally & this now does appear to be the case. We should continue lower in to the end of the week at least as we look for a test of support at 24.00 & possibly as far as 23.80/70. This should hold the downside & offer a short term buying opportunity but we need stops on longs below 23.55.

Resistance at 24.70/80 could hold the topside but if we continue higher look for a retest of this week’s high at 25.10 for a selling 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