Silver: The Support at 19.94 Has Been Broken
Silver has successfully tested the resistance area defined by 20.52 (see also the declining channel) and has broken the hourly support at 19.94 (15/01/2014 low). However, weakness has thus far been capped by the short-term declining channel. Hourly supports can now be found at 19.68 (21/01/2014 low) and 19.35. Hourly resistances are given by 19.97 (intraday high) and the declining channel (around 20.28).
In the longer term, the failure to break the key resistance area between 24.87 (26/04/2013 high) and 26.07 (26/09/2011 low) coupled with an underlying bearish trend call for lower prices. The break of the key support at 20.50 favours a move towards the next key support at 18.23 (28/06/2013 low).
The recent pullback has stopped our short strategy.