Mcx silver future in month of September, closed at 34461 with loss. This was first losing month for mcx silver future after strong gains in august and July. In September, mcx silver future hit high at 41927 while recorded low of 39309 and closed near low. Total almost 2600 rupee month range and weak closing for mcx silver future on profit booking and risk on trades.
For month of October, mcx silver future has major hurdle at 40275 and below it silver will remain weak and sell. On downside mcx silver future will have support as well as sell targets around 38825 and then 37650 rupee for October series. If gives reversal and breakout above 40275 then that will be strong buy signal for short covering rally up to 41250 to 42900 levels.
On daily chart, mcx silver is in downtrend but MACD is with early bottomed out pattern and might show rally from here. On weekly chart, mcx silver once again slipped below 40500 level which is bearish sign from long term view.
For bullion commodity traders, mcx silver future outlook below 40275 remain strong bearish and trading strategy will remain sell and accumulate but indicators suggesting reversal so wait and watch next 1-3 trading sessions and then take long or short call for given targets. If silver gives reversal and breakout above 40275 then enter long with stop loss and keep swing targets at 41250 and then 42900 rupees.