Silver: Successful Test of The Key Support at 20.50
Silver has successfully tested the key support at 20.50. Resistances for a short-term bounce can be found at 21.30 (intraday high) and 21.55 (intraday high).
In the medium-term, silver is moving within its wide horizontal range defined by 20.50 and 23.42.
The failure to break the strong resistance area between 24.87 (26/04/2013 high) and 26.07 (26/09/2011 low), coupled with the subsequent decline, favour the start of a medium-term phase of weakness. Key supports are at 20.50 and 18.23.
Yesterday's whipsaw near the key support at 20.50 stopped our short strategy.