Silver: Bulls are driving the car and heading for long drive
|Overview: From the past couple of weeks we are witnessing that bulls are leading in the silver and taking it to the northside. Presently silver is trading at multi year’s high of 26.80 level which is the fresh high since April 2013. Overall it is trading and sustaining above all the major and minor moving average lines.
Technical Analysis: From a long term perspective we can see that on a monthly chart pair has given us bullish breakout of the pure consolidation i.e. range bound territory of last few years. From a technical perspective, we can see that 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 26.80 level continuously so some correction can’t be ruled out but this correction should be taken as buying opportunity.
Odds are in favor of bulls and intraday to weekly bias remains bullish on the pair as long as 23.00 level remains intact on a closing basis. The parabolic SAR green dots are favoring the bulls and a bullish crossover on the MACD indicator is also favoring the bulls. RSI has arrived into overbought so some correction is also expected.
What Next: The 23 is immediate support level followed by 20.00 level whereas 28.20 level is immediate resistance level followed by 30.00.
Trade idea: Based on chart and studies above we would suggest to our traders and investors that buy silver at 26.50-60 level target is 28.20 and 30.00 level with the tight stop loss of 23.00 level on closing basis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.