Key Points

• 0.382 Fibonacci level
• Breakout from descending resistance line
• Ascending Channel

Silver Daily Chart

Prices have managed to find support at the 0.382 Fibonacci level. Discounting the first breakout beyond this level, price action has created a triple bottom which might prove pivotal if prices are to challenge the $26.00 handle. Silver has been consolidating in the region between the 0.382 and 0.236 Fibonacci levels. The market is inclined towards the long-term bullish side after bears failed to break the support level to trade in the $22.00 range.

The (black) descending resistance line has been holding down prices, but the recent bullish has managed to close above the line. This breakout is a significant milestone for the bulls. From this point of view, bulls can now climb towards the $26.00 handle since there is no other immediate historical resistance between $24.00 and $26.00. However, a consolidation cannot be ruled as markets seek for new information to drive the market in any particular direction.

The Relative Strength Index is hovering around the 50 region and pointing sideways. A closer look might suggest that it has reached its previous turning point. A consolidation cannot be dismissed especially when price have struggled to break on either side of $22.79 and $25.51. A glimpse of the (red) 200 Moving Average cements the bullish bias that is surrounding the precious metals markets. Except for the Bear Market of March, prices have remained afloat above the 200 MA.

If prices successfully close in the red ascending channel, the long term bullish trend will then head on to challenge the $30 handle. Prices have shied away from the monthly resistance but another retest of this region might pave way for a bullish breakout.

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
Gold	1808.70	1817.70	1829.40	1838.40	1850.10	1859.10	1870.80
Silver	23.28	23.56	23.85	24.13	24.42	24.70	24.99
Platinum	975.01	990.43	1012.31	1027.73	1049.61	1065.03	1086.91
Palladium	2026.00	2125.55	2220.50	2320.05	2415.00	2514.55	2609.50

Pivot Points (Weekly)

Name	S3	S2	S1	Pivot	R1	R2	R3
Gold	1639.10	1704.90	1743.40	1809.20	1847.70	1913.50	1952.00
Silver	23.28	23.56	23.85	24.13	24.42	24.70	24.99
Platinum	881.86	900.98	1012.31	1027.73	1049.61	1065.03	1086.91
Palladium	2026.00	2125.55	2220.50	2320.05	2415.00	2514.55	2609.50