Mcx silver future this week closed at 39014 with gain. This was first weekly gain for this bullion commodity and in this week’s we saw silver closed with flat gain after last week’s flat loss suggesting consolidation on weekly chart. This week mcx silver hit high around 39288 and low was at 38313 so Total 1000 rupee range in this week and flat positive closing on buying and recovery.
Mcx silver weekly chart setup showing prices are now moved above 5 and 20 weeks average levels of 38700 and 39000 and now heading for breakout above 39950 which is 50 weeks average resistance zone. Above it expect fresh medium to long term bullish trend and higher levels for silver prices. Weekly chart RSI is at 48 and ready for breakout above 50 with fresh long term buy signal while MACD is at -683 with bullish divergence and with buy signal given at 36900 levels.
Mcx silver future opened strong for august series and then bull trap given swing low of 36935 where many shorts are still trapped. On upside 39800 and then 40900 are my bullish swing targets for august series and we already saw high of 39677 in last week.
Mcx silver daily chart price trend and momentum both are strong bullish and above 37600, remain buy and accumulate for upside targets. Silver daily chart setup showing prices are above all short term averages and this week sharp downside move tested all averages and given swing below them and caught another chunk of short sellers. On downside 39000 is 5 days average level, 38550 is 20 and 50 days average level and strong support zone for this short term bullish trend. RSI is 57 with bullish divergence and buy signal. MACD is with bullish divergence and with buy signal given at 37600 levels.
From investment point of view, mcx silver looks bearish and given major breakdown in 2017 below 40500 support and hit bottom of 38000 and made fresh low at 35500 which will act as long term support now. Now after forming bottom at 35500, silver prices heading for 40500 for trend breakout for long term targets of 47500 and 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.