Chart of the day: Shanghai silver slips through

Early days as the lunar New Year holiday only just ended and markets are waking up again. But the front month Shanghai silver contract has again broken above weekly trend-line resistance; the question now is whether this can be maintained. There are subtly positive signs here, with the horizontal chart level at 3,850 yuan per kilo which was resistance is now providing support. So too has the 50 per cent retracement level and the rising upper edge of the Ichimoku cloud. Moving averages and momentum have yet to turn bullish, but a close above the 26-week moving average at 4,134 should help the bullish case; then expect a squeeze to Fibonacci resistance at 4,300.

Nicole Elliott is a technical analyst