MCX Silver: What the chart speaks to bulls
MUMBAI-INDIA (Aug 12) MCX Silver September prices are hovering near 44000 levels. Silver prices have shown good breakout of trend channel around 43200 level and prices are still trading above the same level. The commodity has been trading in the channel for the last two months. Currently, prices are trading above the upper band of trend channel which is supportive for the commodity.
On charts, silver prices have broken the triangle pattern which shows that prices have good potential to trade higher in coming session.
On the upper side, prices have technical target of 48000 levels which is the target derived out of the triangle pattern visible in the chart. But prior to reaching that level, silver may face resistance of 45500. On breaching and sustaining above the same, it may touch 48000 levels. To the lower side, prices have immediate support at 43200 levels which is the support evident from the trend channel. On breaking the same, it may find next major support at 40500 levels. Prices are also trading above 8, 21 and 34 days EMAs which is also supportive. Long term traders are advised to buy at lower levels.
MCX Silver September Strategy: Buy around 43400 SL 40400 TGT 45500 and 48000.