Wednesday, May 25, 2011

Technical Charts - SI & SLW

Technical post for Silver Futures (SI) and Silver Wheaten (SLW)

The SI chart includes Fibonacci retracements for the recent correction (cyan) and the prevailing trend line since QE2 was factored in (bold yellow). The next major resistance point is at the 50-day moving average around $39.30 where the chart previously reversed. In addition, there is minor resistance at the 50% Fibonacci retracement at about $38. One of two things will happen: 1. The chart will reverse and continue to channel between $33-$39, or 2. The chart will break through the 50-day SMA and head into the $40s where I believe it should be. We'll see what happens...

Silver Futures SI with moving averages and Fibonacci retracement.
Silver Wheaten looks as though it has bounced off the bottom of its prevailing channel. If the previous trend holds and silver continues to move higher SLW should test its highs within 4 months.
Silver Wheaton (SLW) with prevailing channel, daily chart.

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