Talking Point:

  • Technical Strategy: Turning Bearish
  • Elliottwave View: Progressing reversal.

Silver is working on testing it's weekly trendline resistance. Last time it was tested 2nd Mar, 2017 and able to break and sustain it's breakout on 4th Apr, 2017. However, we see on 25th Apr, it was tested again but not able to sustain it's breakout and able to break and stay back. Post that move, silver was in bear mode and went till $16. From $16, commodity started showing correction and testing again same trendline. we are seeing this shorting opportunity for near and long term. As we are able to see divergence on hourly and daily chart along with triangle formation on hourly chart, we prefer to short at current level and look for profit booking depend on future price action.

Shorted pair @ 17.44 with 18.00 stoploss. Target will be define based on future price action.

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