FX.co ★ Technical overview of the instrument SILVER according to the “Regression channels” system for December 10, 2010.

4-hour timeframe

Technical data:
Head channel of the linear regression: direction –up
Low channel of the linear regression: direction - up
Moving average (20; smoothed) – sideways
CCI: - 33.8011

Explanation:
Head channel is upward directed that proves in the long term the uptrend keeping. Low channel is upward directed that proves the continuation of the uptrend even in the short run. The price in its upward movement has almost reached the Murray’s level “4/8” which is a strong reversal level; the price has reversed and went down. At the moment the price is near the level “2/8” - 28.13 and also the price managed to fix below the moving which hasn’t reversed yet. However, the price didn’t manage to overcome the level “2/8”. Thus, we have a lateral movement. In case the price fixes below the level “2/8” the correction can drag on and you can trade down with the target “1/8” – 26.56. To continue up-trading it is recommended to wait before the price fixes above the moving and the level “3/8”. In this case the target is “4/8” - 31.25. CCI is near the zero level; it doesn’t give signals about the possible reversals.

The closest support levels:
S1 – 28.13
S2 – 26.56
S3 – 25.00

The closest resistance levels:
R1 – 29.69
R2 – 31.25
R3 – 32.81

Trading recommendations:
At the moment we observe the correctional movement against the uptrend. The price is between the levels “2/8” and “3/8”. It is necessary to wait until the price fixes below “2/8”, the target is level 26.56 for down trading.
For up trading it is recommended to wait until the price fixes above the moving for up trading and the level “3/8”. In case these conditions are observed trade up with the target 31.25. In this situation stop loss is placed above the moving average.

In addition to technical image, one should take into account the fundamental data and the time of their release.

The chart annotation:
Head channel of the linear regression –unit-directional moving blue lines.
Low channel of the linear regression - unit-directional moving purple lines.
CCI – blue line in the indicator’s window.
Moving average (20; smoothed) – blue line on the price chart.
Murray’s levels – many-colored horizontal lines.