Silver trend analysis 26 to 30 May 2014
Silver daily chart technical analysis
Silver future on last trading session closed at 40,797 with loss. On daily chart, silver price trend and momentum both are down. Silver is trading below all short-term averages with oversold indicators on daily chart. For next week, silver future has support around 40k and then 39k while on upside expect strong resistances at 41,800 which is its 1 month average and then 43k which is its 3 month average.
For next week, silver traders keep buy on decline strategy with strict stop loss below 39k and expect technical bounce back rally up to 41,800 to 43,000.
Silver weekly chart technical analysis
Silver future this week closed with loss. This was forth week of losses for silver prices and in these four weeks prices tumbled from 41,500 to low of 40,575. Total almost 100-rupee range or 2% volatility in week and closed with loss. On weekly chart silver future price trend and momentum is strong bearish and prices are trading below all medium to long-term averages and near lows. From medium to long term view, silver now has support at 40k and then 38k while on upside expect strong supply from market at 44,500 which is its 6 month average level and 45,500 level which its 12 month average level. Weekly chart indicators pattern are very bearish suggesting downside rally may continue in upcoming weeks.
Investors here keep contra view, below 40k follow buy, and accumulate in small quantities strategy for targets of 44 to 45k.