Gold and Silver

SILVER: Going Ahead

In just the last 5 years, silver has seen a rise from $8 to $50 and then a decline to current levels of $22. Analysts are having views of either doubling from here or just falling down another 50%. One thing, volatility will exist and traders can exploit it to profit from it. Volatility is the time traders have the opportunity to make profitable trades.

  1. The last time silver made a higher high on the monthly charts was OCTOBER 2012.
  2. The last time silver gave a close above the 21DMA was 21st March 2013.
  3. Silver is in a "stepping-down" ladder pattern. It falls heavily, consolidates and falls again.
  4. Silver is at major supports which if broken could send it tumbling down further.
Let's look at some charts on the monthly, weekly and daily basis to get a clearer view.

SILVER-Monthly

Silver has support at $21.3, if it closes below those levels, it could see $19.3, $18.5, $17 levels. On the upside, the monthly resistance for silver is at $26. This gives the broader outlook for silver.


SILVER-Weekly
The weekly chart indicates that silver is at a monthly support but as this support is from a trendline from the recent lows, it doesn't indicate much strength. It could possibly give an upmove till $22.4. If $22.4 breaks then the next upside target comes to $25.


SILVER-Daily
On the daily chart silver is close to it's moving average resistance of 22.3 which co-incides with the falling trendline of the past 1 month. Breaking this range will set the move for silver to touch $24-$25 mark.

Overall, Silver is in a negative territory with no sign of a bottom yet. A mild support exists at $21.3 which could give it an upmove to $22.3.  If $22.4 breaks then $24-$25 will be seen and above that $27. But more than that chances exist of silver breaking $21.3 and tumbling down to $19.3, $18.5 and $17 over a period of time. At the time of this article, silver is at $21.95. Bearish days for silver ahead unless the crucial resistances break. Keep an eye on the levels. Happy Weekend.
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