TECHNICAL SPEECH

The above weekly wave chart indicates the bearish stance on lead for medium term.

In the perspective of Elliot wave, the whole structure from the low of 72.55 (12-Jun-10) to current level is corrective triangle pattern which are labeled as a-b-c-d-e. “Wave e of wave b”, has completed and major bearish leg on cards towards 109 which is crucial rising trend line support level. If it breaches & sustains below 109, we may see further selling pressure towards 99 which is its 61.8% extension level of Wave W and Wave X.

On the weekly chart, the RSI indicator has showed a negative crossover with its price, which is the sign of weakness.

Recommendation: Sell at CMP (121.35) or sell on rise for the target of 109 - 99 levels with the stop loss of 137 (Closing basis).

The above chart shows bullish outlook for medium term. Silver kissed and is trading near medium term trend line support which indicates bounce back on the cards toward 32 – 33.5 levels.

The formation and price development looks like a Triple bottom on weekly chart (Bullish reversal pattern).

In addition, on weekly chart Long lower shadow candlestick has been formed in last 3 weeks that signifies bullish reversal.

The weekly stochastic oscillator shows multiple legs of positive divergence which is buy signal.

Support level placed at 26.

However, the momentum will pick up on upside once the resistance (29) is breached. The reversal for the bullish view would be below 26 on a closing basis.

Overall the Silver is heading toward 32 – 33.5 levels which is 50% - 61.8 % retracement level is taken from the 37.46 – 26.73 levels as well as falling trend line resistance level (red color).