MCX Silver price after completing the anticipated downside move towards Rs.38800 level has been trading in a narrow range since the past 3 weeks. A shown in the chart, price is witnessing resistance at Rs.42000 level and is taking support at Rs. 39700 level.
The 14-period RSI has also taken resistance at 50 mark and has now turned sideways indicating loss of momentum in the price. However, Positive divergence can be seen in the chart which can be support for the price till the price holds above the low of bullish engulfing candlestick pattern is made on 28/06/2013.
Hence it is advisable to go long on the commodity only on dips for the target of nearest resistance at Rs.41950 level in the short term.