Skip to main content

Silver Outlook - Technical Analysis

Silver has been moving in a range of $1.50 for well over a month. We have enough reasons to believe Silver trend has bottomed out at $8.50 levels. What we have seen is more in a fashion of retracement arising out of oversold conditions. The chart patterns are not yet suitable for rally but as mentioned the trend which began in March at $21 levels right down to December bottom is likely to have ended in December. We are likely to see another retest or similar move.









The silver entered into a resistance packed zone around $12, from where it retraced. Looking at this positively, even with such resistances prices have not moved but have consolidated below the $12 marks. This either implies, on a medium to long-run we are opened to a massive upside possibility.

Its time to buy Silver



We also feel the retest is possible, as the bottom needs to be reiterated. In the short term, we have seen two top like formations in mid December and early Jan around $11.80 levels. This is likely to cause some serious resistances in very short term. The support trend line which is moving up from November lows to now, is broken. And also there is a definite signs of slowing momentum. But that’s the story for short term.





Either with a retest of $8.50 lows (or nearby $9) or a time-bound correction within a range should enable prices to challenge the resistances currently placed at $13.50 and $16.50.

rETRACEMENT

Labels:

Comments

Post a Comment

Popular posts from this blog

How-to overcome sendentary lifestyle.

Some interesting points on overcoming sedentary lifestyle. There are many other routine ones, just try googling that. 1. Some not so routine tips on avoiding the sedentary lifestyle 2. Walking while talking on phone is a good way to get expressive and burn calories too. 3. Don't use the phone to call someone a short walking distance away. Walk and visit whenever possible. Same for grocery shopping. 4. Catch a different bus that makes you walk a bit more. You can catch a bus from a different stop, a little farther from your regular stop. 5. Pacing the length of the subway platform whenever the train/bus is late. 6. Dance Source: from various places on net
Post a Comment
Read more

Cognitive rules of business presentations

In his recent book, Clear and to the Point, Kosslyn explained that the four rules of PowerPoint are: The Goldilocks Rule, The Rudolph Rule, The Rule of Four, and the Birds of a Feather Rule. Here's how they work. The Goldilocks Rule refers to presenting the "just right" amount of data. Never include more information than your audience needs in a visual image. As an example, Kosslyn showed two graphs of real estate prices over time. One included ten different numbers, one for each year. The other included two numbers: a peak price, and the current price. For the purposes of a presentation about today's prices relative to peak price, those numbers were the only ones necessary. The Rudolph Rule refers to simple ways you can make information stand out and guide your audience to important details -- the way Rudolph the reindeer's red nose stood out from the other reindeers' and led them. If you're presenting a piece of relevant data in a list, why not mak...
Post a Comment
Read more

Definition of Cult Stocks

From a blog: A classification describing stocks that have a sizable investor following, despite the fact that the underlying company has somewhat insignificant fundamentals. Typically, investors are initially attracted to the company's potential and accumulate positions in speculation that its potential will be fulfilled, providing the investors with a substantial payout. While most of these cult stocks promise they will be the next big story after they make a new discovery or get the newest contract from the government, most do not provide investors with anything other than the story. Furthermore, these stocks typically generate very little, if any, revenue at all. For example, many micro-cap biotech stocks are cult stocks. While they promise that they are going to be working on a miracle compound or drug, most of them do not have any source of income as they slowly burn away their initial capital in research and development. However, some cult stocks do occasionally make good on...
Post a Comment
Read more