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Silver Sees Bearish Pattern, Sell On Rises Till 41,750: Sharekhan

Published 09/17/2014, 07:37 AM
Updated 05/14/2017, 06:45 AM

A bearish engulfing candlestick pattern and a negative cross-down on the key moving averages suggest further weakness in the counter.

Silver


As one can see from the adjacent chart above, MCX silver is following a falling trend channel on the four-hour chart. Currently it is near the upper trend line of the channel. A bearish engulfing candlestick pattern and a negative cross-down on the key moving averages suggest further weakness in the counter. The other technical observations are: the Parabolic SAR is above the current market pricevalued at Rs42,160, the Relative Strength Index is valued at 40.50, the Positive Directional Momentum Indicator is valued at 16 and the Negative Directional Momentum Indicator is valued at (27). On rises till Rs41,600-41,750, one should sell for a downside target of Rs40,800-40,500 levels. Trade above Rs42,200 will negate the bearish view.

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