The price of spot silver once again found support at a previously identified price level and a breach of $26.50 may set the stage for a significant retracement of the August to January move.
We have already seen a move below the rising trend line from late August to early January when the price of spot silver broke below the $28 support level. As previously identified, $26.50 has provided support over the past two days.
Should spot silver move below this level, the commodity should continue its decline until the $25 dollar support area. A long term target may be a 61.8% retracement of the August to January move near the $22.80 level.
The $28 support will now act as a resistance level, as should the January 19th high at $29.50.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
