Overview:- The Silver price was range-bound last week it was unable to break the 14.70 level since last 3 consecutive days due to which we have seen a choppy sessions. Overall we are bearish on the silver as it declined from the 16.90 level to 11.22 level which is showing pure weakness in the silver and then we have seen a bounce on the silver where it arrived to the 14.60 level which was the second opportunity to sell for those who have missed earlier.
In our previous report we mentioned to short the silver at 17.20 level for the target of 15.20 and 12.00 level and out targets have been achieved so we are expecting that our traders and readers must have made profit from this move.
Technical Analysis :- From technical prospective we can see that the current selling is not a fluke it is from the expected technical levels. As we can notice that it’s a strong resistance level of fibonacci retracement level, which indicates that it’s just a starting further selling is still awaited.
A bearish engulfing candlestick price pattern has been formed on the daily chart which is itself a bearish price pattern and confirming the bearish trend. Well the present picture depicts that the bears 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 downfall and convert any rise as an selling opportunity.
Today’s closing matter a lot for us, if we see closing below 13.50 level then further downfall is on the cards and it will open the way towards the 12.50 atleast and furthermore. Pair is now trading below all the major and minor EMA lines which is favoring the bears. We will keep our view as bearish on the precious metal and odds are in favor of bears as long as 14.70 level remains intact on daily closing basis.
On hourly chart a downside crossover on MACD indicator is supporting the bears and it’s an recent development. and RSI is also favoring the bears. On hourly chart it has breached down the last support line of consolidation phase.
What Next:- The 12.50 is immediate support level followed by 11.50 level whereas 14.80 level is immediate resistance level followed by 15.50.
Trade idea:- Based on chart and studies above we would suggest our readers that go for short at current levels 14.05-10 level target is 12.50 and 11.00 level with the tight stop loss of 14.75 level on closing basis.
