As per daily chart silver is moving in rising wedge, normally
these patterns are known as trend reversal pattern but some time these pattern
works as trend continuation also. As per this trade setup rising wedge seen
after a nice bearish move from 44.18 to 26.08. As per this chart analysis now
we can expect that short term advance will remain continue till 37-37.50 this
area can act as key resistance area or we can say that resistance line of this
wedge can act as a nice reversal zone around 37$. For this view 34.40 will
remain key support and failure of this wedge will occur below 32.75 after a
break below 32.75 another sharp down move can’t be ruled out after that silver
will try to taste 22$ if moves in our expected way as per this trade setup. Stochastic
indicator with overbought reading is also supporting 37 zones as key reversal
area.
Very short term trend will remain continue and 36.80-37.40
will be target for buyers.
34.40 will remain key support for this view, failure below
34.40 very short term fall till 33.75-33 area can’t be ruled out but real game
will start only after failure below 33 key support areas.
Support:- 34.40 - 33.70 - 33.00
Resistance: 35.90 - 36.80 - 37.60
Recommendation:
Based on the charts and explanations above, we recommend
hold longs with stop loss of 34.40 for expected targets around 35.90-36.80-37.60.
Selling silver on rise around 37.20-37.40 for targeting
around 34.40-33-23, stop loss with four-hour closing above 38.30 might be
appropriate
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