Spot Silver : (XAGUSD)
We are looking for a daily close or two below US$ 36.25 to confirm a short term top has been posted, but much like Gold, it is too soon to write Silver off just yet.
• Bullish momentum in Silver peaked several weeks ago, but the price resilience since has been impressive as can be seen from the day chart here.
• Given Silver is but a few ticks from the recent high of 38.130 we can’t rule out another new high, but we suspect there will be a number of traders looking to short from 37.90-38.10, so it could well be an interesting few hours of trade when markets open in a few hours time.
• We view US$ 37.60 as the key near term support, and if taken out swiftly should result in a dip to 37.30, and quite possibly 36.90-37.00
• Silver does have significant support at 36.25, which could be a short term rebound level if it is tested quickly this week.