Silver Rise Reaches Our First Target

The Commodity Trader’s view - In a recent Update we took a look at Gold – this has continued to rise, breaching further interesting technical levels (please refer to the 6th Feb Update, or latest Commodity Guide). After a bout of underperformance last year, Silver has been outperforming in 2009, and should not be neglected.

• MONTHLY CHART – CONTINUATION: The long term chart shows how effective was support from a major 76.4% level (and highs from 2004/2005 too). We have been bullish of Silver for some months now. On this chart note potential resistance offered by the 15.00 area.
• DAILY CHART – MAR-09: The uptrend in 2009 has picked up pace, the latest boost coming from the break above the channel top projection. That said, our long-standing 14.00 initial target has been reached – a pullback soon would not surprise, though this is not immediately signalled. Main support now comes from around the 11.77 05-Jan high. But one observation to be made, which applies to Gold too, is that the current chart structure in no way suggests bear fatigue – higher prices are very likely. The next big level on this chart is the May-08 low, which coincides with one of our 61.8% levels – resistance is likely here.

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