Silver weekly outlook 2 to 6 June 2014
Silver daily chart technical analysis
MCX silver future on last trading session closed at 39,586 with loss. On daily chart, silver is in strong bearish trend and trading at fresh low with heavily oversold state. For next week, silver future has support zones around 39k and 38k while on upside 41k is first resistance of its 1 month average and 42,800 is next major short-term resistance of its 3 month average. Daily chart indicators are bearish and heavily oversold.
Risky traders here must keep buy on dips and accumulation strategy with strict stop loss for targets 41k and then possibly 42800 in next week.
Silver weekly chart technical analysis
MCX silver future this week tumbled by 3%. This was fifth losing week for silver future and in these 5 weeks period lost 4000 rupees from its value. This week silver made high around 41,230 while low as at 39,517. Total 1800-rupee range or 6% weekly swing and closed with loss at fresh low. From medium to long term view, silver has support areas around 38k and then 36k while on upside 44k is first resistance of its 6 month average and 45,500 is next resistance of its 12 month average. Weekly chart indicators pattern are bearish and heading towards oversold area.
Long-term investors here must follow buy on major decline strategy for upside targets of 44k to 45k.