Silver traded with negative node after exchange operators in Shanghai and New York increased margins. Investors have been dumping industrial metal silver on a spate of weak manufacturing news.
Silver was little changed after exchange operators in Shanghai and New York increased margins, or the amount of money they require to trade silver futures. Silver moved lower this week to current at 54403. The price action shows as an inside week compared to last week’s range.
We feel the metal is going to move sideways between 52000 and 58000 for at least another couple of weeks. Long term trend line support now lies at 49500 and topside is held by May reactionary high 62000. The Gold Silver ratio made a move higher this week to 42.70 from last week’s 40.20.
The topside level to watch is 43.95 with a break yielding a quick jump to our target 45.68. This level is the 38.2% retracement of the 68.34 to 31.68 move.
Now technically market is trading in the range as RSI for 18days is currently indicating 44.26, where as 50DMA is at 59803.76 and silver is trading below the same and getting support at 54320 and below could see a test of 54236 level, And resistance is now likely to be seen at 54529, a move above could see prices testing 54654.
Trading Ideas:
Silver trading range is 54236-54654.
Silver traded with negative node after exchange operators in Shanghai and New York increased margins
Silver is having resistance at 55264 and support at 53456 level.
Holdings at ishares silver trust fell by 51.56 tonnes to 9885.40 tonnes
