Weighing on support at 27.92/85
- The silver price has again retested support at 27.92/85 and this is starting to look exposed. While 27.85 underpins, we remain unable to rule out a retest of the 29.38/62 region.
- The late February high at 29.62 will then be eyed before the minor psychological 30.00 level. Further up the area seen between the 55- and 200-day moving averages and the four month resistance line at 30.25 is another potential upside target. This is likely to then lead to a reversal lower being made, however.
- A close below 27.92 will see the market break down from its recent trading range and put the June 2012 low at 26.11 back on the map this together with the 26.02 2011 represents a major break down point. As stated above, we expect to see more recovery but while silver stays below its January high at 32.51 we will retain a longer term neutral- to-bearish stance.
Silver – Weekly Chart
Continues to hover above the 200 week moving average at 27.11