SILVER Technical Outlook

Maintain a bearish stance on silver as the cluster of resistance between 11.750, former support from Aug 14, 11.865, the 50% retracement of the 13.250 to 10.480 decline and prior support from Aug 29 continues to provide formidable resistance.

While 11.865 continues to cap the topside, the broader trend remains down, but from a shorter-term perspective, as long as Sep 28's 11.781 peak continues to hold, we expect an immediate resumption of the decline from 13.250, the high from Sep 5.

With momentum turning lower again from neutral levels, we are looking for a re-test of 11.057, the low from Sep 25, ahead of an extension to 10.720, Sep 20 floor and ultimately 10.480, Sep 15 pivot low, which is coincident with the 10.450 base from Jul 19.

As long as 11.781 limits gains, focus is on 11.057 then 10.720. We would turn neutral on a move above 11.781, with a recovery beyond 11.865 necessary to push us towards a bullish stance.