Silver In A Downtrend
CommodityOnline | Jun 10, 2014 04:54AM ET
MCX Silver July as seen in the weekly chart above has opened at 39,657 levels and made a low of 39,465 levels. During this week prices bounced from the lower levels towards the weekly high of 40,470 levels. As expected at the end of the week prices could not able to sustain on the higher levels and corrected towards 39,828 levels and finally closed 1.04% higher at 39,997 levels. Technically, Prices has formed a “Small Bullish candlestick pattern” which is basically sign of short covering on the lower levels.
For the next week we expect silver prices to find support in the range of 39,200 – 39,000 levels. Trading consistently below 39,000 levels would lead towards the strong support at 38,500 levels and then finally towards the major support at 38,100 levels.
Resistance is now observed in the range of 40,400 – 40,500 levels. Trading consistently above 40,500 levels would lead towards the strong resistance at 41,300 levels, and then finally towards the major resistance at 41,900 levels.
MCX / Spot Silver Trading levels for the week
Trend: Down
S1 – 39,200 / $ 18.70 R1 - 40,500 / $ 19.30
S2 - 38,500 / $ 18.30 R2 - 41,300 / $ 19.80
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