Overview:-From past couple of weeks we are witnessing that bulls are leading in the silver and taking it to northside. Presently silver is trading at 23.90 level and it is trading and sustaining above all the major and minor moving average lines.
Technical Analysis :-From technical prospective we can see that a a valid breakout of previous swing’s high on the weekly chart which is a sign of bullishness. A short term uptrend line still remains intact so we will keep our view bullish and buy on dips is advised. Well the present picture depicts that the bulls are driving the car and they are heading for a long drive so traders and investors are advised to sit in the car and have a long position, however silver is rising up from 11.23 level to 29.82 level continuously so some correction can’t be ruled out and we have seen the dip till 21.64 level.
Odds are in favor of bulls and intraday to weekly bias remains bullish on the pair as long as 20.00 level remains intact on closing basis. The parabolic SAR green dots are faovring the bulls and a bullish crossover on MACD indicator is also favoring the bulls. RSI has arriving into overbought so some correction is also expected.
What Next:-The 21.50 is immediate support level followed by 20.00 level whereas 25.20 level is immediate resistance level followed by 26.50.
Trade idea:- Based on chart and studies above we would suggest to our traders and investors that buy silver at 23.90 level target is 25.20 and 26.50 level with the tight stop loss of 21.00 level on closing basis.
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