Trading consistently above 39,300 levels would lead towards the strong resistance at 39,800 levels, and then finally towards the major resistance at 40,300 levels.
MCX Silver Dec. as seen in the weekly chart above has opened the week with gap up at 38,410 levels and in the starting of the week prices rallied sharply and made a high of 38,975 levels. In the mid of the week prices could not able to sustain near to the resistance zone of 39,000 – 39,300 levels and corrected sharply toward the low of 37,981 levels. In this week prices closed below the previous week’s closing of 38,399 levels and finally closed 0.85% lower at 38,074 levels. Technically, as per the candlestick pattern prices have formed “Bearish candlestick pattern” indicating down trend for coming trading sessions.
For the next week we expect silver prices to find support in the range of 37,600 – 37,500 levels. Trading consistently below 37,500 levels would lead towards the strong support at 37,000 levels and then finally towards the major support at 36,400 levels.
Resistance is now observed in the range of 39,000 – 39,300 levels. Trading consistently above 39,300 levels would lead towards the strong resistance at 39,800 levels, and then finally towards the major resistance at 40,300 levels.
MCX / Spot Silver Trading levels for the week
Trend: Down
S1 – 37,600 / $ 16.90 R1 - 39,300 / $ 17.70
S2 - 37,000 / $ 16.60 R2 - 39,800 / $ 18.00
Weekly Recommendation: Sell MCX Silver December between 38600 – 38800, SL- 39300, Target – 37600 / 37500