MCX Silver: "47000" looks like a barrier
MUMBAI-INDIA (Aug 14) Silver has suffered a miserable year so far, bludgeoned by gold’s unprecedented selling anomaly. The exceptional weakness in both metals was greatly exacerbated by futures speculators piling on short-side bets. But silver story now looks like a rags-to-riches one.
Silver prices at MCX are trading with a dream rally. The commodity which was slumping around 40,000 levels surged to 47,000 in a short span. Short rallies on gold favoured silver futures.
The commodity has thrice failed at 43,000 levels and retreated to 42,000 levels, remained range bound for long time.
Stochastic and the RSI have turned bullish signalling that a short term low might be in or is near. Silver has breached the triangle pattern and rallied to 47,000 levels. Traders are advised to stay on sidelines and observe short term variation in silver.
The commodity should remain around 45,500-46,500 levels or else it may decline to 44,500 levels. It may witness strong support at 46,000 levels. On charts, silver is showing bullish phenomenon. MACD is positive and P-ROC (Rate of Change) is at bullish territory. The commodity is trading at overbought levels.
Profit taking at 47,000 levels may witness slight downtrend in the near term. The overall trend remains bullish for MCX silver. If it breaches 47,000, rally towards 48,000 levels look possible.
On COMEX, silver recovered from $19-20 range to $22 levels. The commodity may witness profit taking around $22-23 range.