Silver prices traded with a negative node as pressure seen on Silver as base metal corrected as a broadly stronger US dollar prompted investors to take profits as markets awaited the outcome of talks on a Greek debt swap deal, while disappointment over a lack of policy easing from Beijing also weighed.
Overall trend remain bullish as record industrial demand for silver and resurging investor interest is diminishing a supply surplus, driving the metal used in everything from solar panels to batteries into its best start to a year in almost three decades.
Uncertainty in Europe sparked the run to the dollar, which normally sends investors shorting gold. European policymakers kicked off a summit to address ways to end the debt crisis, while at the heart of the epicenter, Greece, negotiations with private bondholders carried on for another day without agreement.
Furthermore, Greek officials balked at a suggestion out of Germany that outsiders take some control of the country's fiscal matters.
Now technically market is trading in the range as RSI for 18days is currently indicating 64.28, where as 50DMA is at 53986.24 and Silver is trading above the same and getting support at 56563 and below could see a test of 56134 level, And resistance is now likely to be seen at 57283, a move above could see prices testing 57574.
Trading Ideas:
Silver trading range is 56134-57574.
Silver prices eased tracking weakness in base metals prices pressure from stronger US dollar wighed on prices.
Some investors cash out after last week's highs as dollar gains
Holdings at ishares silver trust dropped by 98.25 tinnes to 9608.95 tonnes
Courtesy: Kedia Commodities
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