SPOT Silver has been in an downtrend since the past two year forming lower tops and lower bottoms within the channel (R-S). The price has recently broken the previous low at $ 20.50 and closed below the same, further the price gave a sharp decline and currently heading towards the previous low and long term support line of $ 18.18. Hence the medium term trend continues to look bearish for Silver and a test of Previous low at $.18.18 (T1) level looks possible.
The 14-period RSI is sustaining below the resistance line well below the 50 mark and is currently pointing lower which indicates bearish momentum.
Until price closes above trend line (S) at $ 26, Selling on rise is advisable.
Strategy –
Go Short on (cmp $ 20) and on rise towards $ 21
Tgt –$ 18.18
SL (closing above) – Rs. 21.99 level.