Silver prices rallied up sharply in the previous week from $14.78/oz to $16.285/oz, a rise of 10.18%. Silver prices in the weekly chart have formed an Inverse Head and Shoulder pattern and breached the Neckline in the previous week. Thus the medium term outlook looks bullish in Silver.

The above Silver Continuous weekly chart has formed an Inverse Hand and Shoulder pattern. Prices have breached the Neck-line at $15/oz last week, closing at $16.285/oz. Thus the medium term trend is Bullish in Silver.

The prices are moving in an uptrend from the $8.4/oz levels (Head) to $16.04/oz (New high) with the support of S1. Thus the uptrend in Silver would remain intact as along as prices trade above $14/oz.

The prices may face resistance at $16.3/oz for closing, as they prices were seen taking support at the Resistance Line- (R1) near the first Shoulder formation in the left.

The prices have moved above all the Moving averages, thus the immediate support is seen near 7 DMA- $14.73/oz.

The RSI is moving upwards in a trend right from the Head formation at 30 levels. RSI is about to enter the 70 levels (overbought levels), which can trigger major bull run in near term. The RSI has lot more room to rise on upside till 80 levels.

The MACD is in the positive territory, while slight upside is seen in the DAV with positive difference.

The RSI is expected to remain above the trend line i. e. 50 levels from now.

Prices can rally upwards to $18.5-19/oz i. e. Rs. 28900-29600/kg (INR: 48.5) in the Short term, on a weekly close above $16.3/oz.

Prices can continue its uptrend targeting $21/oz i. e. Rs. 32750/kg (INR: 48.5) in the Medium term, provided prices trades above $14/oz.

We recommend buying Silver at dip around $15-15.5/oz. i. e. Rs. 23900-24160/kg (INR: 48.5)