Technical Outlook on Silver - Nirmal Bang

Silver has always been a Volatile trading Material, but people always like to trade in silver even though it’s a volatile one. We have seen a sharp rally from $18-$49 in 2010-11 and again back to where it was started from like $18 in 2013.

Interesting thing about silver is, it had been holding its RSI support around 28-29 levels since last 18 years and it is seen on the chart that whenever it is reached to 28-29 level it is bounced back sharply so the prices are. This time RSI is trading at 18 so being short at this level for short to medium term looks risky, So BEARS should start booking profits for silver.

In other way we can see a 161.8% projection i.e. $17.4 from two highs i.e $49 and $44 with a low of $33 is about to complete. So the Silver Prices can maximum drift down till $17 or may be in worst case scenario $16, but eventually the prices should test 38.2 and 50% of the recent fall from $36-$18. I.e $23 and $25

Prices are in a highly oversold territory, so one bullish spark is about to come in coming months.

Outlook: We expect the ongoing rally to fizzle out at around $18-$17and, in the near term may be in 2-3 quarters prices are likely to test $23 and $25. Our view remains firm as long as silver prices do not close below $14 on daily basis.

Source : Equity Bulls

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