Buy Silver Mini June 1st lot at CMP 39230 and add 2nd lot at 38400
Way2wealth | April 17, 2013, midnight
Since, April 2017 the silver prices have been trading on bearish note and from the high of 42820 the prices slipped till 37720 mark by breaching the previous low of 38325 in the recent sessions. In the last week, it slowly recovered from the lows and ended forming Doji candlestick formation.
Going through, the long term logarithmic line chart, prices have witnessed supports around the trend line and as well as the bullish breakout level at 38000 mark i.e., of February 2016(clsoing basis). While, on the broader scenario the silver prices are moving within a triangle pattern. After last week’s consolidation prices ended forming Doji candlestick pattern and this week it started inching higher from the key support levels.
On the other hand, due to sharp fall in prices the key momentum indicators, RSI and stochastic slipping into oversold zone territory of 0.32 and 0.4 respectively on a weekly basis is also signifying strong supports.
By the above analysis, the silver prices are currently quoting near the key supports and we expect prices to move higher from the present levels, of (39200) towards the slating trend line resistance of 43000 then 44500 levels. Hence, we recommend buying one lot of silver mini June at 39230 and another lot at 38400 for the targets of 43000 then 44500 levels.