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Will Silver Hold?

Published 12/20/2016, 03:37 AM
Updated 07/09/2023, 06:32 AM
XAG/USD
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SI
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Here is what i said about silver on 14th of December. As weakness was apparent from the 5 hr chart on 14th december, I clearly said about my concern that further strength is only on sustained move above $17.30.

Here is that chart which raised the concern, and the same proved true and we witnessed the capitulation in following day
Silver 5 Hour Chart

And now we are at $15.898 at the time of writing, low so far is 15.830. Here is the daily chart with latest possibilities for the upcoming days.
Silver Daily Chart

Right now, it seems that the daily chart is forming a H&S top, although shoulder is not in symmetry right now (if already has formed) so there's some confusion regarding shoulder. If we try to deduce from indicators, then we must have a bounce from this zone to form a shoulder at least if not a complete reversal.

But markets do not run on hypothesis. It does whatever it wants to do, so we must be prepared for a move lower below 15.80. If silver breaks 15.80 decisively, then we should be ready for the lower price area of 14.80, followed by strong support zone of 14.40, which if fails to hold then towards the previous bottom of 13.60. I am not ruling out the possibility of 12.75 followed by 11.81 and finally the expected bottom area in the zone of $10-10.80.

Resistance: 16.60/17.30
Support: 15.75/14.80

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