Silver – Bounce off 16.00 Support
Price action last week on spot silver, a daily chart of which is shown, broke down below a rough head & shoulders pattern neckline as well as key support in the 16.70 price region. At the end of last week, price had reached the noted downside support target of 16.00, approaching the bottom support border of a key parallel uptrend channel. With a good bounce to begin this new week, silver has tentatively respected the 16.00 support level. Short-term upside resistance on this bounce tentatively resides, once again, in the 16.70 price region. For more technical analysis on silver, please click here for Monday’s (2/01/2010) Chart of the Day . – James Chen, CTA, CMT * For information on my DVD set, High-Probability Trend Following in the Forex Market , please click here . * For information on my book, Essentials of Foreign…

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