Fundamental remains very weak for silver from last few months, gold with bad performance in 2014 kept pressure on silver as well as slowdown in leading manufacturing economy china slashes silver demand as industrial metal. With a positive start of 2015 from gold & a major expectation of from china , japan & europe together could provide a supportive ambiance for this metal.
Coming to the technical picture, Silver trading at $16.35 while i am writing this & as we can see on chart in December 2014 silver made a low around $14 mark & bounce same day with some extra . This move almost tested the 261.8% level of last upside move. This move also provided a strong positive divergence on charts as well as a falling under consolidation period suggest absence of sellers on current level. Thus a combination of bounce from lower of long term & a most possible inside hinting for a recovery ahead. Area around $17.70 & then $18.70 could be targeted in coming trading session.
SILVER MCX has same story like comex silver still on mcx charts, silver looks more comfortable , probably due to INR movement. A strong black cloud cover candle with great & follow up by a consolidation period with thin . generating a positive divergence . Silver also broken above a descending & currently following a minor upside channel. This technical setup suggest for a bounce ahead to retest the previous high around 39000 & then may be 41000 in coming trading session.
At the end time will tell us the true story.
Best of luck.
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