MCX silver weekly report 5-9 May 2014
MCX silver daily chart technical analysis
MCX silver future on last trading session closed with huge gains of 3% at 42,083. On daily chart silver is now closed above its week averages and moving towards 1 month and 3 month averages. Temporary bottom is formed around 41k, which will be strong support for now. On upside 42,800 which is 1 month average and first resistance for silver. Above it, 44k is 3-month average and next resistance for silver. Daily chart indicators are off the lows and suggesting reversal move.
Traders above 41k keep buy and accumulate view for targets 42,800 and then 44k in next week.
MCX silver weekly chart technical analysis
MCX silver future this week closed with loss of 1.23% but revered most of the loss in last single session. This week silver hit high at 42,746 while low was at 40,514. Total 2200 rupees or 5.5% weekly swing and closed with loss. A red
“hammer” is formed on weekly chart suggesting reversal on downtrend.
From medium to long-term view, 40k and 38k are strong supports on downside while 45k and 47k are strong resistances. 45k is 6-month average level and 47k is 12-month average level. Weekly chart indicators patterns are still mixed.
Investors can expect technical short covering move up to 45k to 47k. 40k is will remain as stop loss for medium term buyers.