Silver Technical Study

Having stabilised ahead of the cluster of support between the Sept. 15 low of 10.480 and the July 19 low of 10.450, silver is now correcting its decline from Sept 28's 11.781 peak.

We consider near-term gains to be corrective in nature, however, and believe that 11.781 reistance will remain intact, maintaining downward pressure on silver. In lieu of price action above 11.781, we look for an eventual move below Wednesday's 10.596 low to trigger further slippage to 10.450 and ultimately 9.470, the June 14 trend low.

Resistance cuts in at the 11.555 high of Oct. 3, but it would take a recovery beyond 11.781 to offset the broader bear.

As long as 11.781 limits gains, focus remains on 10.450.