Saturday, October 15, 2011

SILVER HAS RESISTANCE ON $ 32.50 - $ 33.50

Silver had fallen sharply from $ 40 to $ 26.15 in three trading sessions last month. After worst decline, Silver has bounced back and touched $ 33.10.Silver is trading near this level from few days. Silver was highly oversold, when it touched $ 26.15. Now Silver is trading in its resistance zone. Silver is in extreme downtrend in daily charts, it is trading below its 200 day’s moving average line. MACD is also confirming its downtrend in daily charts. In weekly charts Silver has taken support from its 100 day’s moving average and this is a strong/crucial support zone for long-term charts. MACD is showing weakness in weekly chart also. Any further decline in Silver prices below $ 26, it will confirm deep downtrend in Silver for long-term. Silver is also facing resistance around $ 33 area. Silver will have to close over this level to add more in its prices. Equity markets have recovered in all over world after the strong European clues, but Silver has not recovered so far. Any bad news from European markets may hit silver prices again. It may taste $ 26 in near term again. Silver may short sell on $ 32.50 level with the strict stop-loss of $33.50 in closing basis. For Indian markets stop-loss level is Rs 57000.