Overview:- The Silver price was range-bound two weeks ago within the support level of 16.50 and a resistance level of 17. Last week, on 23 December to be precise, the bulls gathered momentum that is enough to break up the resistance level of 17 and the price increased towards the resistance level of 18.20. In the recent week market closed with a daily bullish marabuzo candle which indicates that the bullish momentum has been started.
Technical Analysis :- From technical prospective we can see that the current buying is not a fluke it is from the expected technical levels. As we can notice that it’s a 50% fibonacci retracement level (major trough and major peak ) which indicates that it’s just a starting further buying is still awaited.
One more technical price pattern we can see that a falling wedge pattern has been formed on the daily chart which is itself a bullish price pattern and a bullish breakout of the mentioned price pattern is confirming the bullish trend. Well the present picutre dipicts that the bulls are driving the car and seems in party mood so traders and investors are advised to sit in the car and enjoy the rally and convert any dip as an accumplation opportunity.
A bullish marabuzo candlestick after a breached downtrend line on the weekly chart is providing more strength to the bulls and on the daily chart also pair is now trading above all the major and minor EMA lines which indicates that further buying is on the cards. We will keep our view as bullish on the precious metal and odds are in favor of bulls as long as 44900 level remains intact on daily closing basis.
A bullish crossover on MACD indicator is supporting the bulls which is recent development on the chart and RSI has tested the overbought territory which may result in a small correction but this correction should be taken as alternate opportunity to buy for those who have missed earlier.
The 17 is immediate support level followed by 16.50 level whereas 18.50 level is immediate resistance level followed by 19.
What Next:- The short term rounding bottom has been completed smoothly and a long term rounding bottom price pattern is in process of formation which will complete at 19.50 level and a valid breakout of the 18 level will open the way towards the 19 and furthermore.
Trade idea:- Based on chart and studies above we would suggest our readers that go for long at current levels 17.90-80 level target is 19 and 19.50 level with the tight stop loss of 16.50 level.
