The US Gold Spot has crossed it 200 DMA on 16th January and have been trading above it.
That indicates the bullishness in the precious metals.
On Friday evening, Silver showed a sharp up move. In MCX it crossed 55000 mark and on Saturday it touched 55800.
The US Spot daily chart indicates a strong break out.
It has been trading on the higher side of the Bollinger Band for 8 sessions and on Friday it challenged the higher band.
The Double bottom formation at $26 is also evident of stronger up move in the coming days.
However, at $33 and then $35 Silver Spot would face some resistance.
The US Spot Monthly chart also suggest the same.
In the month of August 2010, after forming tripple bottom at $17.5, Silver spot zoomed to $49.786 in May 2011.
Since then, the larger trend for the metal has been of selling. But, now it can be seen on the chart that the tripple bottom has been formed at $26.
Second, the fall of $23 (from $49.8 to $26) can be considered as the 71% retracement of the great rise from $17.5.
Which means, the metal has completed its 71% retracement and formed a tripple bottom.
Looking at the domestic situation in MCX, the double bottom formation on Daily chart is seen at 48500.
The RSI is 60 and MACD has turned positive.
On higher side, it may face resistance at 57200 - 900.
A closing above 57900 will open up range up to 59400 - 63800.
The sharp recovery backed by strong volumes on Friday evening suggests bullish trend for the metal.
The daily trading range of the metal is as large as 3000 points. Hence, one should consider any dip as a buying opportunity. The buying range is 54200 - 55500. However, if it start trading below 52400, the momentum has to be considered as collapsed. So, it is very necessary to maintain the stoploss of 52300.
That indicates the bullishness in the precious metals.
On Friday evening, Silver showed a sharp up move. In MCX it crossed 55000 mark and on Saturday it touched 55800.
It has been trading on the higher side of the Bollinger Band for 8 sessions and on Friday it challenged the higher band.
The Double bottom formation at $26 is also evident of stronger up move in the coming days.
However, at $33 and then $35 Silver Spot would face some resistance.
The US Spot Monthly chart also suggest the same.
In the month of August 2010, after forming tripple bottom at $17.5, Silver spot zoomed to $49.786 in May 2011.
Since then, the larger trend for the metal has been of selling. But, now it can be seen on the chart that the tripple bottom has been formed at $26.
Second, the fall of $23 (from $49.8 to $26) can be considered as the 71% retracement of the great rise from $17.5.
Which means, the metal has completed its 71% retracement and formed a tripple bottom.
Looking at the domestic situation in MCX, the double bottom formation on Daily chart is seen at 48500.
On higher side, it may face resistance at 57200 - 900.
A closing above 57900 will open up range up to 59400 - 63800.
The sharp recovery backed by strong volumes on Friday evening suggests bullish trend for the metal.
The daily trading range of the metal is as large as 3000 points. Hence, one should consider any dip as a buying opportunity. The buying range is 54200 - 55500. However, if it start trading below 52400, the momentum has to be considered as collapsed. So, it is very necessary to maintain the stoploss of 52300.
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