Silver: Burly penetration by bulls at key support level

July 5 , 2018

 

By looking at the daily chart we can see that from last couple of weeks the white gold has become too volatile and earlier it was making lower lows and lower highs, but bulls are pushing the silver at upside from last two consecutive 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 on the daily technical chart.

 

The traders and investors are in thinking mode that wheather it is a buy or just a correction i.e. second opportunity to sell again. Well if it traders and settles above 16.50 level then we may say that it is a buy and if it is unable to sustain then it is a sell. Odds are in favor of bulls and intraday bias remains bullishon the metal as long as 15.75 level remains intact.

 

 

The silver is bouncing back from the strong key support level as it has bounced earlier also from this level. 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 15.75. 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 15.75 is immediate support level followed by 15.50 level whereas 16.50 level is immediate resistance level followed by 16.00.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *