Mcx silver future this week closed at 39650 with gain. This was first weekly gain for silver prices after last 3 weeks profit booking. This week mcx silver future hit high at 39828 while low was at 38710. Total almost 1100 rupee range and positive closing on last session short covering.
Mcx silver weekly chart, shows prices are now moved major long term averages. On upside 40000 is 50 weeks average resistance zone and major level to watch from long term view. Weekly chart RSI is at 49 and with bearish divergence. MACD is at -55 with bullish divergence and with buy signal given at 36900 levels.
For October, mcx silver opened weak below major level of 40275 rupees and almost hit bearish target of 38650 with low at 38710 in this week. On downside, next support as well as target zone will be 37650 which will be target level if breakdown happens below 38650 level. reversal from here expect sharp covering targets of 40275 and then uptrend for silver prices as daily chart indicators suggesting early bottomed out patterns.