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Jim Wyckoff Comex Silver at 6-Wk. High; 30-Yr. High Scored in Jan. Next Upside Target

15 February 2011, 09:53 a.m.
By Jim Wyckoff
Of Kitco News
http://www.kitco.com/

(Kitco News) - March Comex silver futures on Tuesday notched a fresh six-week high of $30.905 an ounce as bulls have the solid overall near-term and longer-term technical advantage. Prices are in a three-week-old uptrend on the daily chart and in a nearly 2.5-year-old uptrend on the longer-term monthly chart.

The powerful silver market bulls' next upside price objective is producing a close above major technical resistance at the January contract and 30-year high of $31.275 an ounce, basis March Comex futures. Such a price move would immediately open the technical door to a price challenge of $35.00 an ounce, or above. Importantly, look for daily price moves to become larger and daily volatility higher if silver futures do push and close above $31.275 an ounce.

Near-term technical support for March silver futures is seen at Tuesday's low of $30.475 and then at $30.00. Near-term resistance is seen at $31.00 and then at $31.275.

The next downside price breakout objective for the silver bears is closing March futures prices below solid technical support at $29.50.

It would take multiple daily closes below strong technical support at $28.00 an ounce in March silver futures to produce significant near-term technical damage to then suggest a near-term market top is in place.

 

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

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