Overview:- By looking at the daily chart we can see that silver is trading in an downtrend and making successively lower lows and lower highs. Overall bulls are leading and taking the charge and heading south side. The way bears are reacting it seems like bears are approaching the 16.00 level. The current picture of silver seems too bearish as we can see that bears are heading south side by taking the supply pressure from the EMA lines.
Technical Analysis :- From technical prospective we can see that a bearish engulfing candlestick followed by bearish marabuzo candlestick which is generating bearish signal on the chart. Overall pair is trading below all the major and minor EMA lines which is providing outside strength to the bears. Bearish crossover on MACD indicator is supporting the bears and RSI is also favoring the bears from negative territory. The 16.50 is immediate support level followed by 16.00 level whereas 17.50 level is immediate resistance level followed by 18.00.
What Next:- The primary trend is up and secondary trend is down sell on high will be profitable strategy for the time being. Overall 16.00 level seems as unfinished target for bulls, however some correction can’t ruled out even every correction should be taken as selling opportunity. A valid breakout of 16.00 level on weekly chart will open the way towards 15.00 and 14.00 in coming weeks.Presently the flow is with bears and
Trade idea:- Based on chart and studies above we would suggest our readers that go for short at 17.00-05 level target is 16.50 and 16.00 level with the tight stop loss of 17.70 level.
