Last week, silver’s sideway trading continued and it has not found a commitment for a breakout yet. More consolidative trading is likely in the near term.
Silver for September delivery rose 81 cents, or 3%, to settle at $27.80 an ounce. Silver advanced 1.1% on the week.
Next week, on the downside, a clear break of 26.07 will confirm resumption of whole decline from 37.48, and should target next long term fibo mark at 24.22.
On the upside, a silver price break above 28.5 will trigger another rally to key resistance of around 29.8.
In the long term, silver price actions from 26.15 is seen as a consolidation pattern. Such consolidation may end at around 37.5. A fall from 37.5 may extend to 61.8% fibo retracement of 8.4 to 49.8 at 24.2 and below. A break of 29.8 suggests one more rising leg before consolidation from 26.15 ends.
The big question remains on whether 49.82 is a medium term or long term top. The current development favors the latter. A price actions from 49.82 may just be developing into a sideway pattern.
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World news with impact on gold and silver at a glance:
China: The Consumer Price Index (CPI) rose 1.8 per cent in July, after a 2.2 per cent rise in June and a 3 per cent rise in May 2012.
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Here are the major world news headlines from the past week with impact of precious metals markets:
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Silver reached its highest level in more than a week yesterday. The rebound was triggered mostly by the recent strength of the euro. The stronger currency refocused investors appetite towards the p... - Gold and silver price remain pressured
On Monday, spot gold advanced as much as 0.4 % to $1,388.41 before trading at $1,386.04 in Asian trading hours.
Silver traded 0.5 % up at $21.7715 after declining 4.4 % on June 7, the biggest drop...
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