silver prices to find support in the range of 40,800 – 40,700 levels. Trading consistently below 40,700 levels would lead towards the strong support at 40,200 levels and then finally towards the major support at 39,600 levels.
MCX Silver Dec. as seen in the weekly chart above has opened at 42,070 levels and the same day it made a high of 42,376 levels. As expected during this week prices corrected sharply toward the 14 week’s low of 41,011 levels. In the week prices closed below the previous week’s closing of 42013 levels and as well as able to closed below the strong support level of 42,000 levels. Finally, prices have closed 1.68% lower at 41,309 levels. Technically, as per the candlestick pattern prices have formed “Bearish Pattern” indicating down trend for the coming trading sessions.
For the next week we expect silver prices to find support in the range of 40,800 – 40,700 levels. Trading consistently below 40,700 levels would lead towards the strong support at 40,200 levels and then finally towards the major support at 39,600 levels.
Resistance is now observed in the range of 41,900 – 42,000 levels. Trading consistently above 42,000 levels would lead towards the strong resistance at 42,700 levels, and then finally towards the major resistance at 43,500 levels.
MCX / Spot Silver Trading levels for the week
Trend: Down
S1 – 40,800 / $ 18.40 R1 - 42,000 / $ 18.90
S2 - 40,200 / $ 18.10 R2 - 42,700 / $ 19.30
Weekly Recommendation: Sell MCX Silver December between 41900 – 42000, SL- 42700, Target – 40800 / 40500