Silver: Nonfarm Payrolls Ahead
Shiv Kumar | Jan 06, 2017 10:50AM ET
Here is what I said about silver on 27 December, 2016. That day's chart is reproduced here:
As we expected earlier, silver must hold the 15.70 area and reverse to break the resistance of 16.30. This is now reality. Right now, silver is trading at 16.540 area after printing a high of 16.760. Here is the latest daily chart below:
Silver's just broken out of the falling wedge pattern and this is its third day of breakout. If it manages to hold and close above this wedge pattern, it will be a good indication for bulls to hope for a good 2017.
If this breakout remains valid, then expected targets for higher prices are 17.30 followed by 17.80 and if 17.80 -18.00 area is cleared convinvingly, then the exposed area of 18.80 and 19.00 will come under consideration. Here is the 5 hour chart for silver:
Right now the silver 5 hour chart is looking vunerable for a correction. MACD just confirms the bearish crossover and RSI also tumbling down towards south. Look for support area around 16.20, followed by 15.90. Look for a buy opportunity after correction.
Resistance: 16.8/17.30
Support: 16.20/15.90
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