Silver prices run nearly 20% since last 20 days from Rs. 50,000 to 60,000 per kg.Prices are now trading at important resistant level of 60500 -60800.Silver (sept) contract has not been able to sustain beyond 60,500 since first week of May 2011.So traders with long position should look to book the profits at this level and should wait for successful closing above 60,800 or wait for a level of 54,800 to enter again.
If silver closed above 60,800 then prices may lead towards 63,000 levels.This probability is looking higher as current conditions like third round of quantitative easing,china demand and U.S.debt issues are favorable for Silver prices
Some of the silver technicals are as follows:
1.Relative Strength Index: RSI (14 days) is 65.It is near to overbought condition.
2.MACD: MACD indicate the prices are in bullish crossover.
3.Ballinger band: Prices are trading near to upper ballinger band and considered to be in bullish mode.
4.If we calculate the retracement on daily chart from recent lows then 38.2% retracement comes to nearly 60,300 and 50% retracement comes to 62,800. so if closed above Rs.60,500, next possible target will be 62,800.
