Dec 24 2018

Silver (XAGUSD):- Likely to test $16 mark

Silver:- From the past few weeks, the metal seems struggling in a tight range of 1 US Dollar ($13.86 to $14.89). Analysed the weekly chart, in which momentum indicators turned back after getting oversold. Relative Strength Index (RSI) with a reading of 14 days, turned back from the oversold zone with a bullish divergence (a strong indication of prices to reverse). Price action made lower lows, whereas in RSI (14 day) there are lows – higher than its previous low. Moving average convergence divergence (MACD – 5,35,5)has crossed above the signal line – made a bullish crossover in oversold area with a positive divergence (another reason to go long in silver). A valid breakout to the resistance line at $15.00 is required for silver to test back the horizontal supply zone (resistance ) of $16.10 (a another 1$ move on the higher side).