June 11 , 2018
From technical prospective we may see a potential rounding bottom pattern has been formed on the daily technical chart. On the daily chart we can see that bulls are getting higher weightage on silver as they are dominating the bulls at every nook and corner, however we are witnessing many whipsaw due to that we can’t ignore the presence of bears also but overall silver is trading and sustaining above all the major and minor EMA lines. Odds are in favor of bulls and we will keep our bias bullish on the silver as long as $16.25 level remains intact.
A detailed and intermediate analysis indicates that a symmetric triangle pattern has been posted on the daily chart and a valid breakout of upper band will open the way towards the north side and sky is the limit so it’s just a starting we will get further bullish signal once bulls give the breakout of $17.50 level then we may see further bullish sentiments. A bullish marabuzo along with inverted hammer is generating the bullish signal for traders and investors but this is time to be very cautious and buy with enough risk reward ratio.
The Federal Reserve meeting is on Wednesday, when it is extensively anticipated to lift up interest rates in what would be its second rate hike this year. Hope for higher interest rates tend to be bearish for silver, which struggles to compete with yield-bearing assets when rates rise.The week will also carry updates on U.S. inflation, retail sales and industrial production. But the silver could find some support from buying amid sensitive trade tensions as markets absorb the fallout from a contentious weekend G7 summit meeting in Canada.
RSI is generating bullish signal from positive territory and MACD indicator is also supporting the bulls for the time being. The $17 level is immediate resistance level followed by $17.50 whereas $16.25 level is strong key support level followed by $16 level.