SILVER - Trading in a Bearish channel
Strategy: Selling is advised in Silver Mini future 44,150-44350 and more at 44750-45,200, as Resistance and Stop level is
too high at 46,750, while on the downside targets are seen at 41,550 and 38,050.
As per the above weekly chart of silver futures, we see that prices are currently trading in a bearish channel of downward sloping trend line (as marked on chart). Similar trend line is seen forming in the short-term as well and prices have seen a reversal, after they failed to sustain above/ breach the intermediate resistance line at 46,450.
Also analyzing the chart, we see that prices have breached its 3-week low of 43,922 giving us a further confirmation on
the short-term trend reversal.
On indicators: 14-week RSI is trading close to 50 but below its moving average, showing signs of shift in momentum to negative, while another indicator MACD is trading below the mid-zero line and with an declining positive difference,suggesting that prices are likely to face resistance at higher levels and that the momentum still remains bearish.
Outlook: Silver for short-term looks bearish and is likely to test Support levels 41,550 and 39,550 in short-term, whileResistance for reversal is seen at 46450.
Note: - We are advising to sell in parts as this strategy will help in minimizing the loss and averaging out the entry prices.
Strategy: Selling is advised in Silver Mini future 44,150-44350 and more at 44750-45,200, as Resistance and Stop level is
too high at 46,750, while on the downside targets are seen at 41,550 and 38,050.
As per the above weekly chart of silver futures, we see that prices are currently trading in a bearish channel of downward sloping trend line (as marked on chart). Similar trend line is seen forming in the short-term as well and prices have seen a reversal, after they failed to sustain above/ breach the intermediate resistance line at 46,450.
Also analyzing the chart, we see that prices have breached its 3-week low of 43,922 giving us a further confirmation on
the short-term trend reversal.
On indicators: 14-week RSI is trading close to 50 but below its moving average, showing signs of shift in momentum to negative, while another indicator MACD is trading below the mid-zero line and with an declining positive difference,suggesting that prices are likely to face resistance at higher levels and that the momentum still remains bearish.
Outlook: Silver for short-term looks bearish and is likely to test Support levels 41,550 and 39,550 in short-term, whileResistance for reversal is seen at 46450.
Note: - We are advising to sell in parts as this strategy will help in minimizing the loss and averaging out the entry prices.
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