Major support at 26.36/02 has been breached; has the 2008 high at 21.40 in focus
- The silver price swiftly dropped through the 26.36/02 major support area as forecasted in Friday’s update. This is where all the weekly relative lows since 2011 have been made and, hence, it should now act as solid resistance.
- So far the drop has taken the silver price to 21.99, a slip through which will push the 2008 peak at 21.40 into focus.
- Around the 2008 high the precious metal should stabilise, at least in the short term.
- Should this not be the case, the major psychological 20.00 mark, May 2010 high at 19.86 and the 2009 peak at 19.49 will be back in the picture.
- Minor resistance is seen around the 25.00 mark and major resistance at 26.02/36. While trading below it, medium term downside pressure will be maintained.
Silver – Weekly Chart
Major support at 26.36/02 has been fallen through; targets the 21.40 2008 peak.