Mcx silver future for month of September opened strong bullish and hit my positional swing target of 40900. Now traders here watch for fresh breakout for next target of 42300 rupees. On downside 38950 is major support zone and above it silver prices will remain buy on dips for targets 40900 and then 42300 rupees.
Mcx silver daily chart price trend and momentum both are strong bullish and above 38950, remain buy and accumulate for upside targets. Silver daily chart setup showing prices are above all short term averages. On downside 40063 is 5 days average level, 39200 is 20 and 38800 is 50 days average level and last support zone for this short term bullish trend. RSI is 74 with bullish divergence and entered into overbought zone. MACD is with bullish divergence and with buy signal given at 37600 levels and fresh pattern suggesting rally for silver prices in short terms.
Mcx silver weekly chart setup showing prices this week given long term breakout above 40000 level are now entered in long term bullish trend for big upside targets. This was second weekly gains for silver prices and in these 2 weeks silver moved from 38300 low to 40970 highs. Mcx silver is now trading above all major weekly averages with bullish outlook. On downside mcx silver 50 weeks average level is 40000 and below that 39450 is 5 weeks average and 39200 is 20 weeks average level. Weekly chart RSI is at 56 and with buy signal triggered at 38300 levels. MACD is at -446 with bullish divergence and with buy signal given at 36900 levels.
From investment point of view, mcx silver was bearish and given major breakdown in 2017 below 40500 support and hit bottom support as well as targets of 38000 and then hit low at 35500 which was next target. Now it will act as long term support now. After forming bottom at 35500, silver prices heading for 40500 for trend breakout for long term targets of 47500 and 56000. Now silver prices above 40500 and will head for my long term bullish targets of 47500 and then possibly 56000.
In last 7 months, silver given 3 negative closing while 4 are with gains and if we compare this with gold then silver prices are underperforming as well as undervalued from long term view. So expect much more upside here as compared to gold in longer terms. In month of august silver prices rallied from low of 36900 to highs of 40275. Total 3500 rupee rally and positive closing. From July low of 35460 to now high near 41000 we saw silver prices recovered by 5500 rupee in 2 months.