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| Posted: 16 Jun 2011 12:24 PM PDT  Silver (daily chart) as of Thursday (6/16/2011) has approached a critical support confluence level at the juncture of a key uptrend support line extending from the late August 2010 low and the bottom of a triangle consolidation pattern. This triangle consolidation occurs after price action dropped precipitously from its 49.78 all-time high hit in late April to a low of 32.30 in mid-May before rebounding back up to the 38.2% Fibonacci retracement (around 39.00) of that drop. Now that price action is near the bottom of this triangle pattern, silver is at a critical price juncture. In the event of a breakdown below this support confluence of the triangle and the noted uptrend support line, a larger bearish correction could be seen, prompting price to fall even further to target the 32.00 level once again. With further bearish momentum that breaks down below 32.00, silver could potentially begin making its way down to target further downside support around the 25.00 price region.
(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.) James Chen, CTA, CMT
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| GBP/USD Tentatively Breaks Down Longstanding Bullish Trend Posted: 16 Jun 2011 09:17 AM PDT  GBP/USD (daily chart) as of Thursday (6/16/2011) has made a tentative breakdown below a key uptrend support line extending back to the May 2010 lows. This breakdown is a key bearish event that, if sustained, could mean a bearish trend change for the pair. This occurs after a general period of overall bearishness stemming from the establishment of the 1.6745 high back in late April. The immediate downside target on this breakdown continues to reside around the important 1.6000 psychological support/resistance level. In the event of a breakdown below 1.6000, which would confirm a bearish trend change, the key support target further to the downside resides around the 1.5750 price region. To the upside, resistance within the context of the current bearishness resides around the 1.6300 price region.
(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.) James Chen, CTA, CMT
This posting includes an audio/video/photo media file: Download Now |
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