Silver - XAGUSD Bottom in place @ 18.82 - 19.06 ??

There may be many theories explaining the recent fall in prices however one more factor which may have impacted the fall is the GAP FILLING theory.

Silver Prices previously in the month of august 2013 shot up due to some macro economical factors or call it short squeezing from the 19.26 levels before filling the gap at 18.82  which existed when silver prices moved sharply above 20 levels from its 52 week low 18.08 which was much awaited to fill and that has been filled now suggests the Price Action . In the Long Run Bullish Trend established by XAGUSD in august by making a high above 24 levels which is still active . On the other Side Silver has a gap to be filled between  28 - 28.86 levels after its steep drop in prices from 31.86 levels in 2013 January which squares 28.86 levels based on Fibonacci Golden Ratio.

Demand & Supply 

India's silver imports rose to a three-month peak in October and are on track to hit a record this year, data from Thomson Reuters GFMS showed, as buyers opt for the precious metal instead of expensive gold to meet high seasonal demand. More shipments by the world's top buyer may help underpin global silver prices that have slumped 37 percent so far this year - their biggest annual drop in at least three decades. Silver imports jumped 40 percent to 338 tonnes in October from 241 tonnes in September, GFMS data showed, driven by demand during the festivals and wedding season that starts from October and tapers off by early May next year.

In the Short term i expect silver prices to reach 28 - 28.80 Levels in the year 2014 

Traders to get a clear understanding about tape ill add some points from my Previous Article published on 17th May 2013

"SILVER UPDATE : TIME TO OPT OUT OF SHORTS ? 

As Visitors & Readers know, I have been a pretty consistent bear on Gold - Silver ever since the April 2011 top. In fact, long-time readers know I called the absolute top @ 44.** & initiated sell for target 22.15 - I have been a nemesis and the destination of hate of Silver & Gold bulls ever since & through out we have  never initiated a buy for momentum trade rather we always initiated Sell Calls & Sell on Rises in #GOLD & #SILVER"

Strongly Down

The chart structure in the metals -- Gold, Silver and Platinum -- all remain negative. Major chart tops have been completed, trends are strongly down and no signs of a bottom have appeared. Additionally, lower chart targets exist. However, I am tempering my view of Silver substantially. I am NOT a bull. But, I can no longer be a bear.

Trading Levels 

Best Buy & support between 18.82 - 19.08  while momentum upside is capped at  20 - 20.92 - 21.84  for now . In near term i.e. 1 - 4 weeks time frame silver has potential to test  23.36 - 24.05 while short term (1-3 months)  target is at 28 - 28.80 . Stops should be maintained at 17.96 as below 17.25 will put bulls in ugly situations.