- May 1, 2020
- Posted by: cabana-admin
- Category: Forex Broker
Overview:- From the past couple of days we are witnessing a very range bound move but yesterday we have seen an initiate taken by bears where they made a low of 14.58 level on the daily chart.
Also, bears started to get supply pressure from the mentioned key resistance level i.e. 61.8% retracement level and now trading below the 50% fibonacci retracement level which is the point of concern for buyer and good news for sellers. The bears have given us bearish signal at an initial phase and we will get further confirmation bearishness once silver trades and settles 14 levels.
The earlier Silver price was range-bound and bulls were unable to break the 14.90 level but yesterday it breached the territory and given downside breakout, today at the time of writing it is trading at 14.80 level and seems like bears are getting ready to make a bearish set up for coming weeks. Well this is the second opportunity to sell for those who have missed earlier.
Technical Analysis :- From a technical perspective, we can see that a potential rounding top pattern has been formed which is providing us a bearish signal and suggesting us the upcoming targets are 13.50 12.50 and 11.50 also. On the bigger picture we can see that initially, bears took the silver from the 18.92 level to 11.22 level and then followed by a pullback correction rally till 15.82 level, which was nothing but the exact 61.8% fibonacci retracment level or strong key resistance level for bulls.
This week’s closing really matters a lot and today’s move will be very crucial for further direction. As we can notice that it’s a strong resistance level of Fibonacci retracement level. 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 a selling opportunity.
Odds are in favor of bears and intraday to daily bias remains bearish on the pair as long as 15.50 level remains intact on a closing basis. Pair is now trading below all the major and minor EMA lines which is favoring the bears. On 4 hourly chart, a downside crossover on MACD indicator is supporting the bears and it’s a recent development. and RSI is also favoring the bears.
What Next:- The 14.50 is immediate support level followed by 13.70 level whereas 15.50 level is immediate resistance level followed by 16.00.
Trade idea:- Based on chart and studies above we would suggest our readers that go for short near 14.90 level target is 14.00 and 13.00 level with the tight stop loss of 15.60 level on closing basis.