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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

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