SILVER TECHS: Trend Needle Points North

Nothing particularly unexpected so far: outlining the international challenges (higher yields, higher defence spending needed). And then talking about the OBR productivity review. She's not "pre-empting those conclusions." But she has talked about a lot negativity about productivity and blamed it all on the previous govt.

• RES 4: $56.153 2.500 proj of the Aug 20 - Sep 16 - 17 price swing   
• RES 3: $55.444 2.382 proj of the Aug 20 - Sep 16 - 17 price swing
• RES 2: $55.000 - Round number resistance
• RES 1: $49.456/54.480 - High Oct 23 / 17 and the bull trigger   
• PRICE: $47.820 @ 08:14 GMT Nov 4
• SUP 1: $46.046 - 50-day EMA  
• SUP 2: $41.135 - Low Sep 17
• SUP 3: $40.000 - Round number support 
• SUP 4: $38.087 - Low AUg 27  

Trend signals in Silver are bullish and recent weakness is considered corrective. Note that the trend has recently been in overbought territory and the deeper retracement has allowed this to unwind. Support to watch lies at the 50-day EMA, at $46.046. It remains intact, however, a break would signal scope for a deeper retracement. Key resistance has been defined at $54.480, the Oct 17 high. Initial resistance is $49.456, Oct 23 high. 

• RES 4: 1.4200 Round number resistance  
• RES 3: 1.4167 50.0% retracement of the Feb 3 - Jun 16 bear leg
• RES 2: 1.4111 High Apr 10
• RES 1: 1.4080 High Oct 16 and the bull trigger
• PRICE: 1.4060 @ 08:11 GMT Nov 4
• SUP 1: 1.3987 20-day EMA 
• SUP 2: 1.3928 50-day EMA 
• SUP 3: 1.3888 Low Oct 29 and a key support  
• SUP 4: 1.3855 Bull channel base drawn from the Jul 23 low

A strong rally in USDCAD last week, and Monday’s extension, highlights a reversal of the corrective bear leg between Oct 14 - 29. A recent doji candle on Oct 29 signalled a short-term reversal. Note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4080, the Oct 16 high and a bull trigger. First support lies at 1.3987, the 20-day EMA.