Sunday, April 10, 2011

Silver near term high $43.50, pullback to ?

World Silver Index, closing price of $40.61 on April 8th.

Since the start of the breakout in late August 2010, the pullbacks in Silver have not taken out the last major break low.  Silver is currently trading along the upper Bollinger band and may reach $43.50 (the Fibonacci 161.8 level) before the next pull back.  The Fibonacci on the chart is based on the last breakout low from late January of 26.30 to the high in early March of 36.75.

If Silver should reach $43.50, it may pull back to the low $38 level which would be a  50% retracement between the current low and the potential high of $43.50.  This may be the area to accumulate more Silver if your looking to add to your current position.

With the US Dollar Index in a decline, Silver may hold it's ground through the spring and summer months before the next breakout towards the upper $40's / $50.

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