Silver July Trending Down, Support 41000, 40000
CommodityOnline | May 12, 2014 04:01AM ET
MCX Silver July as seen in the weekly chart above has opened the week with gap down opening at 42,444 levels and during this period prices made a high of 42,945 levels. During this week prices could not able sustain on higher levels and in mid of the week prices corrected towards the low of 41,318 levels and finally closed 2.56 % lower at 41,453 levels. During this week prices have closed below previous week’s closing of 42,540 levels and as per candlestick pattern it formed a “Bearish candlestick” which is the indication of bearish activity.
For the next week we expect silver prices to find support in the range of 41,200 – 41,000 levels. Trading consistently below 41,000 levels would lead towards the strong support at 40,000 levels and then finally towards the major support at 39,000 levels.
Resistance is now observed in the range of 42,800 – 43,000 levels. Trading consistently above 43,000 levels would lead towards the strong resistance at 44,200 levels, and then finally towards the major resistance at 45,000 levels.
MCX / Spot Silver Trading levels for the week
Trend: Down
S1 - 41,000 / $ 18.80 R1 - 43,000 / $ 19.80
S2 - 40,000 / $ 18.30 R2 - 44,200 / $ 20.30
Weekly Recommendation: Sell MCX Silver July between 42,100 – 42,300, SL- 43,000, Target – 41,000 / 40,500
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