Silver weekly tips 12 to 16 May 2014
Silver daily chart technical analysis
Silver future on last trading session closed at 41,453 with loss. Silver prices are in downtrend on daily chart and heading for fresh low. On upside 42,400 and 43,600 are strong resistances while on downside 41,500 and 41k are strong support zones. Indicators are bearish and suggesting primary trend resumed. Traders for next week below 42,400 keep sell on rise view for downside targets. Expect fresh low near 40k and even below it.
Silver weekly chart technical analysis
Silver future this week closed down with loss of 1.5%. This was second week of loss for silver. This week silver future hit high at 42,870 while low was at 41,318. Total 1500 rupee or 3% swing in prices and closed with loss. Weekly chart price trend and momentum both are strong bearish and suggesting downside for prices. On upside 44,800 is 6-month average level, and 47k is 12-month average level and both will be strong supply zones for future. On downside, 40k and 38k are supports as well as targets. Weekly chart indicators pattern are bearish so below 44,800 stay away from silver but from investor’s point of view 40k-38k will be best long-term entry zone so keep watch for that.