MCX Silver July as seen in the weekly chart above has opened at 41,469 levels and during this period prices made a high of 42,750 levels. As expected during this week prices could not able sustain on higher levels and in mid of the week prices corrected towards the low of 40,854 levels and finally closed 1.35 % lower at 40,894 levels. In the week prices have made the new contract low of 40,854 levels and formed “Bearish candlestick” which is the indication of bearish trend.
For the next week we expect silver prices to find support in the range of 40,200 – 40,000 levels. Trading consistently below 40,000 levels would lead towards the strong support at 39,200 levels and then finally towards the major support at 38,500 levels.
Resistance is now observed in the range of 41,800 – 42,000 levels. Trading consistently above 42,000 levels would lead towards the strong resistance at 42,800 levels, and then finally towards the major resistance at 44,000 levels.
MCX / Spot Silver Trading levels for the week
Trend: Down
S1 - 40,000 / $ 18.80 R1 - 41,800 / $ 19.80
S2 - 39,200 / $ 18.30 R2 - 42,800 / $ 20.30
Weekly Recommendation: Sell MCX Silver July between 41,800 – 42,000, SL- 42,900, Target – 40,200 / 40,000