Tuesday, June 15, 2010

Silver Short term view

askchirag.com : Silver view short term :

Everywhere People are Talking about the Massive Head & shoulder formation in Silver comex on daily charts which is a Bearish pattern and Silver Could Fall Down to 14.25 levels But technically speaking The massive breakdown Will come only If silver trades constantly below 18 $ and than breaks the important Support level of 17.05 $ (Neckline of head & shoulder pattern) , A Break below 17 $ will Confirm the above Pattern and open Downside targets till 14.25 $--but Contradicting to above pattern it has formed a massive Inverted head & shoulder pattern With Neckline near 18.75 $ , a break above Same can open upside targets till 19.8 $--21.44 $
So overall currently trading at 18.55 $ technically its in a neutral zone and next big move would Only happen if manges to close above 18.75 $ or break below 18 $ till than would be Range bound
Looking at RSI charts its constantly reversing From 40 Zone which generally tends to Happen in bullish phase So looking to Trade it more buy on dips till time 18.00 $ is not Broken

Short term Reco : Buy silver at 18.5 $ SL of 18 $ Look for 19.8 $--21.44 $