On daily plotting, the pattern has occurred in silver price chart with peak 1 at 18.485 (that is where Back to back “shooting star” candle patterns are traced out), peak 2 at 18.647 and neckline at 16.847 levels.
There has been constant slump below DMAs ever since the peak 2 occurred.
Consequently, ongoing swings manage to break below the neckline, the current prices are well below DMAs for now.
We foresee more rout on DMA crossover (i.e. 7DMA crosses below 21DMA).
Most importantly, both momentum & trend indicators have been bias.
has been consistently converging downwards to the swings that signal the robustness in the selling interests, while another leading oscillator has also been in line with this stance, it has reached oversold region but no traces of %k crossover ( crossover).
More evidently, on this timeframe has also shown a crossover that has triggered off environment to prolong further.
While on monthly price behavior in consolidating phase doesn’t seem to be convincing so far and price bias towards southward direction as both leading as well as lagging oscillator signifies selling sentiments.
Well, to conclude, the short term trend has absolutely been bias, the prices can take off only if it tests supports at 15.640 levels that would mean that bears likely to play their roles upto this level.
We don’t think it would be wise to expect a steep recovery in the long lasting bear trend that we've seen since October 2012.
On speculative as well as hedging grounds, silver futures for near-month delivery eased to $16.422 a troy ounce, traders on delivery basis can go short in the silver's mid-month contracts also for targets of 15.640 levels that could be entered at current juncture to leverage profits from a dip in the price of the underlying precious metal.