Silver -Temporary Recovery Off Fibonacci Support

The surge in Silver came to a halt in Apr, and subsequent pullback was sharp. Interesting Fibo levels have recently provided support but we remain on the lookout for a further bear advance.

• WEEKLY CHART -CONTINUATION The sharp drop back recently found support near the 38.2% level. Failure here would confirm a medium term setback underway.
• DAILY CHART –Jul-11: Clear support on the Daily chart emerged from around the 32.00 76.4% pullback level, ahead of the 31.37 early Jan high. In the Commodity Specialist Guide we had said that a s/term recovery from here would not be a surprise. Initial resistance has come from the 39.00 38.2% bounce level. It is unclear how strong the rebound can be, but also keep in mind higher potential resistance from the 44.64 26-Apr low. A later break of 76.4% support would target the late Jan 26.45 low next.

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