July 26 , 2018
By looking at the daily chart we can see that silver is trading and moving in downtrend from short term point of view whereas from an intermediate point of view it is trading into a consolidation phase which is not over yet. From past couple of weeks the white gold has become too volatile and earlier it was making lower lows and lower highs, but bulls are pressing the silver at upside from last couple of days. It is continuously falling down from 17.23 to 15.75 level but after marking the low of 15.73 level bulls penetrated strongly and we have seen piercing pattern candlestick following by three white soldier pattern i.e. bullish marabuzo candlestick.
The way bulls are showing their presence in the white metal we may say that it’s just a starting and further picture is still due and we will get further confirmation of bullishness once it trades and settles above 16 level. If bulls provide daily closing above 16 level we will further bullish signal and it will open the gate towards the 17 level in short term. Odds are in favor of bulls and intraday bias remains bullish on the metal as long as 15.28 level remains intact.
From technical prospective we can say that the way silver bounced it has created the chances of double bottom price pattern on the daily technical chart. If it’s true signal then it’s time to accumlate the metal and it will move up further towards north side. Once silver trades and settles above the moving averages then it will get further bullish signal.
By long term analysis we can predict that metal is still in the consolidation phase so the breakout on either side will give us new buy or sell signal for the time investors are suggested that they should go for long with strict stop loss of 15.25. A bullish crossover on MACD indicator is about to come and supporting the bulls and RSI is also favoring the bulls from oversold territory. The 15.25 is immediate support level followed by 15 level whereas 16 level is immediate resistance level followed by 16.50.