SILVER Intraday Technical Analysis 2012-02-27

The silver is currently testing the upper limit of its medium term bullish channel at 35.70 and seems to initiate a decline. However, a break of these levels will free up significant potential and initiate a bullish trend more violent.
Technical indicators provide sell-signals and are approaching the overbuy zone supporting the assumption of a decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market will indicate a bullish opportunity as soon as the silver has broken its resistance at 35.70 with the 1st objective of 36.30, then 36.50. A break through 35.50 will invalidate this scenario.