Written by :- Ritika Saini, Sahil Khan and Hitesh Devatwal
Till the last week bulls were leading in the game and were dominating the bears at every nook and corner and it marked a high of $15.297 level on Friday and result was bullish with three white soldiers. Well yesterday bulls started their journey with fresh energy and made a bounce from $14.31 to $15.36 level which was a strong counter attack on daily basis.
The both precious metal fueled up by FOMC meeting yesterday where FED chairman said that they will continue to pressure on the US dollar and the US-CHINA trade war will continue. In the last week we have seen some correction where some profit booking was going on. But recently we have seen again bulls are dominating the bears. We are waiting for the clear breakout of $15.515 level which will give us new buy signal and we are expecting that bulls will arrive at $15.732 shortly.
From technical prospective we can see that a rounding bottom pattern has been completed on daily chart which is providing us bullish signal and a valid breakout of short term downtrend line is also pushing us to keep our bias as bullish on the silver as long as $15.009 level remains intact.
Overall silver is making successively golden crossover and bulls even breached a short term downtrend line with bullish marabuzo also and heading towards north side with strong bullish momentum. The coming week’s are very crucial for precious metal as we can see on the chart that $14.814, $14.997 and $15.297 is the high of preceding year which can’t be ignored at the moment. Presently short term to intermediate term trend is up so in an uptrend market buy on dips will be profitable strategy, and to have a strong bull run dollar’s weakness is also required which is almost there.
The way bulls are reacting it seems like they are approaching the $16.00 level in near term and every dip should be convert as buying opportunity. Overall bulls are driving the car and approaching the $16.00 level initially which is a key resistance level or high of February 2019 high with $16.00. Well the way bulls are reacting it seems like they are trying to mark a new high of this year 2019.
Bulls are still sustaining above the $15.00 level which indicates that bulls will shoot up and further buying is still on the cards..A bullish crossover on the MACD indicator is a recent development on the chart which is providing us bullish signal and providing strength to the bulls. RSI is also providing bullish signal from positive territory. The $16.209 level is key resistance level followed by $16.209 whereas $16.184 is key support level followed by $15.515 level. Odds are in favor of bulls and daily to weekly bias remains bullish on the precious metal.