Silver technical chart | 06-Oct-2011

Below is the technical chart of Silver with Doda-Donchian, Doda-Bbands and Ichimoku indicators.

Like Gold, the technical indicators gave Buy signal here also @30.31. Few important points to consider here.

a) The buy signal is given by Doda-Donchian and NOT by Doda-Bollinger Bands indicator. So, this is a weak or false buy signal and one should ignore it.

b) Looking through Ichimoku indicator, it is trading near high resistance area, popularly known as cloud, and will surely face tough resistance there.

So, do NOT take buy call here and wait to CLOSE above 33.36 on H4 time frame for any long position. Till then, wait and watch.

If it closes below 29.50, take sell call instead.