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Outlook Still Bearish Despite Recent Gains

SILVER TECHS
  • RES 4: $26.968 - High Sep 21
  • RES 3: $24.779 - 20-day EMA
  • RES 2: $24.666 - 50-day EMA
  • RES 1: $24.404 - High Sep 29
  • PRICE: $24.305 @ 06:58 BST Oct 6
  • SUP 1: $23.135 - Low Sep 30
  • SUP 2: $21.677 - Low Sep 24 and the bear trigger
  • SUP 3: $20.751 - 38.2% retracement of the Mar - Aug rally
  • SUP 4: $20.000 - Psychological round number

Silver maintains a bearish outlook despite the recent corrective recovery. A bearish theme follows the sharp sell-off on Sep 21 and the subsequent follow through. The recent key technical development has been the break, on Sep 24, of trendline support drawn off the Mar 18 low. Furthermore, a former major support at $23.448, Aug 12 low has also been cleared. The focus is on $20.751 next, a Fibonacci retracement. Firm resistance is seen at $24.666.

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