Overview:- From past couple of weeks we are witnessing that bulls are leading in the silver and taking it to northside with a slow motion but from last couple of days we have seen that the indicators are betraying with the bullish momentum due to which we have seen a selloff yesterday. Yesterday it reversed from day high 19.45 level when all the things were in favor and bulls were trying to move ahead, but it declined to 18.90 and tried to breach the uptrend line on hourly chart.
Presently silver is trading below moving average lines and the last hope of 200 SMA line is unbreached which is last hope of bulls. Bears are getting ready to make a bearish set up for coming weeks but they will get success of this week they trades and settles below the 18.50 level.
Technical Analysis :- From technical prospective we can see that a bearish divergence of RSI at hourly chart which is providing us trend reversal signal and yesterday we got the reaction of divergence. Fortunately an uptrend hold it due to which bears lost the moemntum and bulls once again got the control on the silver. Well today at the time of writing pair is still trading near to make or break level, it today bears got the chance and they able to take it downside below the 18.80 level then we many announce that silver has topped out for short term basis and the way of 18.30 and 17.90 will open up quikly.
A short term uptrend line still remains intact so we will keep our view bullish and if bears able to sustain below the line then we may shift our bias from bullish to bearish. This week’s closing really matter’s a lot and today’s move will be very crucial for further direction.. Well the present picutre dipicts 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 below the 18.80 and 18.50 level.
Odds are in favor of bears and intraday to daily bias remains bearish on the pair as long as 19.50 level remains intact on closing basis. Pair is now trading below all the major and minor EMA lines which is favoring the bears. 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.
What Next:- The 18.50 is immediate support level followed by 18.00 level whereas 19.50 level is immediate resistance level followed by 20.00.
Trade idea:- Based on chart and studies above we would suggest our readers that go for short below 18.80 level target is 18.00 and 17.00 level with the tight stop loss of 19.60 level on closing basis.
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