Posted By : Kishore B.S
This Precious Metal has moved up in the last few days crossing the narrow consolidation range of 27700-28050 to 28480 levels, the charts are indicating that the steam for the Upmove seems to be over the commodity is likely to face huge resistance to cross the 28500 mark for the time being above which the strong selling might set in at around 28800-29000 mark.
One can use the opportunity to sell on rallies with stoploss of 28500 for some narrow quick gains.
Silver has started its Upmove after the period of narrow consolidation for nearly a week and then breaking out of the range, and when this kind of a break out happens generally the upside momentum is likely to sustain for some good time frame.
In the case of this chart the charts are indicating that the Upmove is just the start for the time being and the rally is likely to face minor resistance at 58000 mark which could be taken out soon to head further to 58300-58600-58800 levels where some real resistance is likely to be met and needs to be watched.
(Inputs Mr. Hemanth V, Faculty TA, Stock Market Institute, Bangalore)