The Commodity Specialist view – The long term picture in Silver still looks very bullish, but shorter term the chart structure could be changing, with certain signs of bull fatigue starting to appear. At this stage these still need confirmation though.
- MONTHLY CONTINUATION CHART:
Following the break of the 21.185 2008 high we turned attention to a Fibo projection near 29.00, which was easily reached.
The chart remains in a strong position for now. - DAILY CHART – MAR-11:
A new 2010 high was seen last week, but note the negative RSI divergence at the time –are bulls tiring?
First confirmation of fatigue would come from a drop through the small channel base projection at 26.50 currently, with a further sign of weakness to come from a break of recent support near the 25.00 level.
In the Commodity Specialist Guide we had already been waiting to see if the chart structure was changing, heralding a longer-lasting pullback/consolidation phase. We await developments.
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