Silver moving in a flag pattern, in on the lower point of the channel. If the channel is broken on the downside, a slide upto 16.82 can be expected.
It has been correcting for some time, there is a possibility that after all the news flow, the short positions will start to unwind and push the prices higher.
Since my ideas can be seen in India only, by the time...
Silver was seen attempting to re-enter the trend lines channel, after a few days of consilidation.
It did respected the doji that was formed day before yesterday.
RSI 21 also appears to honor support of 50 as it as reversed from there several times.
CCI indicator too is indicating a reversal from lower band of range (-70 to -80).
Chances of an upside...
Silver has been correctly sharply for past 3 days, at the moment (17.46) it is at a make or break level.
If it slides further, it may touch 16.8 followed by 16.2 levels.
Technical indicators are showing weakness at this stage (27-09-19).
Traders taking short positions must exercise caution and keep monitoring charts for trend reversal.
18.04 on the upside...
As the RSI charts are (specially the 21 period one) is far less volatile or noisy than the price movement chart, it is easier to determine its trend using the trend lines. the attached silver RSI chart shows how trend lines can be drawn on RSI and a fair idea of price movement can be drawn.
silver formed bearish harmonic pattern in its weekly chart and trading above its over bought region in RSI ... Short Silver at 17.10-17.50 for the target of 16.11 and 15.26 with the sl of 18.60
Trendline support has now become resistance. White metal is trading at 78.6% support level which is $13.75. $ 17 would act as major supply zone which needs to be broken decisively on closing basis for change in the overall bearish to sideways trend.
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