Posted By : Kishore B.S
This precious commodity staged an amazing bounce back last week from the support level of 27400 to the current resistance price level of 28430, now it remains to be watched if the same is taken out which if done would lead the rally to 28610-28800 where some selling cannot be ruled out. The technical trends indicate that the rally is likely to continue for another 2-3 sessions.
Silver has been moving in a narrow range after the huge fall last week taking support at the price level of 55300 and it remains to watch if that price support would hold in the days to come. Also technical charts have been showing lower lows and lower highs for Silver indicating that the commodity is in a small Downtrend showing weakness and a positive sentiment would trigger only if the price level of 56800 is breached with volumes.
Unless the positive trigger doesn’t happen then the negative sentiments are likely to prevail and below 55300 the support sets is at 53800-53000 mark where some healthy long positions could be built. For the time being it would be best to play longs on dips above the support zone and short on rallies near the resistance zone.
(Inputs Mr. Hemanth. V, Faculty TA, Stock Market Institute, Bangalore)