August 14, 2011

  • Silver weekly chart shows price holding on to 20 week moving average on closing basis. 
  • Daily time frame seems to be getting support from 50 DMA.
  • Hour is moving towards resistance in the form of 200 Hour moving average. If price gets resisted here one can remain short. 
  • Price sustaining above 200 Hour moving average can give good gains to silver bulls.
  • Daily chart has confirmed the bearish event the death cross. Last death cross did not do well so expecting this one to perform better.
  • Price rally's may find resistance at higher levels. 
  • Weekly chart shows 1210 - 1230 as resistance level. Daily chart shows 1247 - 1260 level as resistance. 
  • So it is better to go short at higher levels, preferably between 1230 - 1260 level with small stop loss. 
  • Price moving back above 200 DMA will negate the bearish scenario.
  • Thing in favor of bulls is the weekly candlestick pattern which shows strong buying at lower levels. But main negative is the amount of technical damage happened last week. Key support levels were violated and now when price gets back to these levels they will act as supply zones once again.


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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore