MCX Silver May Extend Downside Move To 41200-40200 Range
CommodityOnline | Jun 10, 2013 07:30AM ET
MCX Silver has been witnessing the worst days ever. April 15 marked the beginning of the collapse. Investors always on the lookout for that short position also reflected the future of Silver.
Silver prices at MCX are now trading with a range bound rally at around 42000-44000 levels. The July contract has lost the momentum on bearish fundamentals. It is now trading around 42682-43471 levels for the week.
The neutral flag pattern from April is yet to be broken. The commodity failure to sustain at higher prices accounted for further damage in silver futures.
The commodity should sustain its position above 42500. Breaching these levels may witness further decline to 41200 levels. Breaking these levels may witness another short rally towards 40200 levels.
The commodity was failing at 44990 levels, and then collapsed to lower levels.
On the charts, silver is experiencing a bearish phenomenon. The MACD is weak and the P-ROC (Rate of Change) is at negative territory. The RSI is in sideways, at 42.34.
Short covering at 41200 levels may witness slight uptrend in the near term. The overall trend remains weak for MCX Silver.
MCX Silver for July, medium term: Bearish
Support: 41200, 40200
Resistance: 44440, 44990
Crucial levels: 41200-44440-40200
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