Reputed financial publication Barron's has come out with a study based on technical analysis, which makes a case that silver (SIK26) will find strong support at $61 levels. Now hovering around the $73 levels, the piece reckons that the 200-Day simple moving average is around the levels of $60, and the precious metals could stage a turnaround from here. A double-bottom formation around those levels has also been cited as a reason for it being a point of turnaround.
Meanwhile, options data has a bearish bias currently. While the Put premium for the May Silver Futures Contract stands at $98,203,470 in total, the same for the Call premium is much lower at $24,184,990. The picture shows a change in the ratio of Put/Call Open Interest, albeit not by much, as it stands at 0.83, reflecting that there may be higher demand for Calls in silver, but it is not significant.
