Silver technical analysis 19 to 23 May 2014
Silver daily chart technical analysis
Silver future on last trading session closed at 40,894 with loss. On daily chart, silver future price trend and momentum both are down. Silver is trading below all short-term averages with bearish and oversold indictors. For next week, silver future has support zones at 40k and 39k while on upside 42,200 is first major resistance level of its 1 month average and then 43,500 is next major resistance level of its 3 month average. Silver is closed at new low with strong price action suggesting another breakdown on sharp supply from market.
Traders below 43,500 keep sell on rise view while those holding shorts from higher level keep targets at 40k to 39k and trail stop loss at 42,200.
Silver weekly chart technical analysis
Silver future this week closed with loss of 1.35%. This was third losing week and in these 3 weeks, silver lost almost 3000 rupees. This week silver future hit high at 42,750 while low was at 40,854. Total almost 2000-rupee range or 4% weekly swing and closed with loss. Weekly chart price trend and momentum both are bearish and silver is heading for historic lows. On downside, 40k and 38k are major support zones as well as targets for upcoming weeks. On upside 44,500 is 6 month average and 46k is 12 month average and both will be strong supply zones. Weekly chart indicators are bearish and suggesting rally will extend on lower side.
Investors must watch for sub 38k levels for long-term investment opportunity.