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Consolidating But Still Eyeing Trendline Resistance

SILVER TECHS
  • RES 4: $26.968 - High Nov 21
  • RES 3: $26.008 - High Nov 9 and a bull trigger
  • RES 2: $25.101 - Trendline resistance drawn off the Aug 7 high
  • RES 1: $24.322 - High Dec 2
  • PRICE: $24.180 @ 07:46 GMT Dec 4
  • SUP 1: $21.899 - Low Nov 30
  • SUP 2: $21.677 - Low Sep 24 and the key bear trigger
  • SUP 3: $20.751 - 50.0% retracement of the Mar - Aug rally
  • SUP 4: $20.000 - Psychological round number

Silver is consolidating. The metal rebounded Tuesday and defined key support at $21.899, Monday's low. Tuesday's price action is a bullish engulfing Japanese candle line and highlights a possible reversal. If correct, this signals scope for a climb towards trendline resistance at $25.101, drawn off the Aug 7 high. A break of the trendline would confirm a more significant reversal. On the downside, $21.899 levels resumes the downtrend.

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