Intraday bias in silver remains neutral and some more consolidations could be seen below 34.33 temporary top. But another rise is expected as long as 31.64 support holds. Current rally should extend towards 36.6 medium term projection target next. On the downside, however, break of 31.46 will indicate short term topping at least and should bring deeper pull back.

In the bigger picture, current development indicates that long term rally from 8.4 has just resumed. Outlook will now remain bullish as long as 26.30 support holds and current up trend should extend further to 161.8% projection of 4.01 (2001 low) to 21.44 (2008 high) from 8.4 (2008 low) at 36.6. One point to note is that rise from 26.30 could indeed be the fifth wave of a five wave sequence from 14.65 (19.845, 17.735, 31.275, 26.3, ?) Hence, we'll be cautious on sign of loss of momentum as silver enters into 34.67/36.6 projection zone.

Comex Silver Continuous Contract 4 Hours Chart

Comex Silver Continuous Contract Daily Chart