Now what is next in Silver

As per this trade setup on daily log scale it seems that we can see some consolidation or down side moves in silver comex in coming days. Silver made new life time high of 34.33 on comex on 22 Feb 2011 and its previous life time high was 31.27 made on 03 Jan 2011. Now silver is making bearish divergence on its 9 periods RSI indicator and today good fall seen in silver from higher levels and taking support near $32.20 and as per candlesticks theory Dark cloud cover formation is under construction and if silver close below $33 then it will confirm this formation. Below $32.20 trader can enter in shorts for near term target of 31.40 a failure below 31 zone can create panic in buyers those have bought this counter around $34 and we will see huge selling in this counter on long term time frame trend is still up in but fresh entry will be only above 34.40-34.50 zone that is very strong resistance zones. Trader can take short positions below 32.20 for expected target of 31.20 and 29.75 in very short term. A failure below 29.70 can create panic on longer time frame also and it can high of 22 Feb 2011 can be final high for this year but trend failure possible only below 29.70 till then trader can enter in longs around $30 with a very small stop loss of $29.70 for a new rally till $37. Failure below 29.70 will be red alert for silver.

To learn technical analysis and trading strategies mail me at sunirathi@yahoo.com

Comments

Anonymous said…

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March 25, 2011 at 10:48 AM

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