Overview:- The Silver price was range-bound two weeks ago and from last two consecutive days we have seen bearish sentiments where it declined from 18.10 to 17.03 which was massive move from bear’s side but bears could not manage their self and they lost the grip from the pair at the same time bulls got the chance and they tried their best to put it towards north side and today at the time of writing it marked high of 17.51.
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 strong support of an uptrend line, which indicates that it’s just a starting further buying is still awaited.
One more technical price pattern we can see that a a bullish hammer candlestick price pattern has been formed on the hourly as well as daily chart which is itself a bullish price pattern and confirming the bullish trend. Well the present picutre dipicts that the bulls are trying to drive 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 accumlation opportunity.
Pair is now trading between 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 16.80 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.
What Next:- The 18 is immediate support level followed by 18.50 level whereas 16.80 level is immediate resistance level followed by 16.50.
Trade idea:- Based on chart and studies above we would suggest our readers that go for long at current levels 17.40-30 level target is 18 and 18.50 level with the tight stop loss of 17.00 level.
