mcx silver future technical analysis report for march 2016
Mcx silver future opened in red for month of March and trading with loss. Here we saw underperformance as compared to gold. I already suggested this in previous commentaries. Mcx silver from low of 33200 rallied at highs of 38800 in only 2 months period. Total 5600 rupee rally or 17% gain seen in short terms. Now trading at month low reflecting future bearish move. On daily chart, silver is trading at 3 month average of 35500 and below it expect downcycle in prices. For month of March 2016,below 36550 remain sell or bearish. So expect lower top lower bottom cycle here. Target as well as downside support zones are 34300 and 32400 rupee. Reversal or uptrend only happen if silver prices cross above 36550 and sustain above it. On upside 38400 and 40700 are resistances as well as target zones on trend change. In extreme bull equity market silver price might fall up to 30 to 28k levels on risk on trades.