MCX Silver has been in an downtrend since the past two year forming lower tops and lower bottoms within the channel (R-S). The price has recently broken the previous low of Rs 45951 and closed below the same, further the price gave a sharp decline and currently heading towards the previous low and long term support line of Rs 41000. Hence the medium term trend continues to look bearish for Silver and a test of Previous low at Rs.41000 (T1) level looks possible.
The 14-period RSI is sustaining below the resistance line well below the 50 mark and is currently pointing lower which indicates bearish momentum.
Until price closes above trend line (S ) at Rs.50000, Selling on rise is advisable.
Strategy –
Go Short on (cmp 45100) and on rise towards Rs.46999
Tgt –Rs.41000
SL (closing above) – Rs. 47990 level.