Commodity (2011-12-02 Silver analysis)

HSI well reached 19,000 as mentioned on Monday, though such movement was kind of unpredictable. Will further update how the index would go next week on Monday.

Today let's take a look at Silver (XAG=).
















From the daily chart, the price has reach the red downwards trending line. This might tell us that the price is going to plunge further, especially after it has crossed lower the previous green upwards trending channel.

50% retracement appears to be a strong support, so the price might consolidate one to two days there. If it keeps on dropping, then previous low at around 26 will be its ultimate support.

For the upside, if it successfully breaks the red uptrend line, its previous peak at around 35.6 will be strong resistant.

So keep an eye on these levels.