Silver has been directionless for a few weeks, since late July. The 4H chart shows the market at recent highs. Though the market is sideways, the 4H chart shows a slightly bullish bias, with the RSI holding above 40 for the most part after kissing 70. Price action is also above the moving averages, though it has been whippy. The moving averages are not all in bullish alignment yet, but appears to be moving that way.
The daily chart shows this consolidation pattern more clearly. After the market found support at 26.12, it rallied to about 28.45 and has been trapped between there since. A break above 28.45 opens up the 29.90 resistance pivot.
To the downside a break below 26.00 breaks below the lows since later 2010, opening out 3-year lows and a bearish outlook toward a key pivot at 21.35.
XAG/USD (Silver) Daily Chart 8/17/2012
Fan Yang CMT is a trader, analyst, educator and the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
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