MCX Silver May contract closed at 37789 up by 2256 rupees on weekly basis.
Last week Silver has nicely recoverd by 2256 points. Silver now settled well
above 10 and 20 weeks SMA and forming a morning star candlestick pattern on weekly chart.
10 weeks SMA had crossed above 20 weeks SMA during January 10 and has been staying above
the same remains supportive for a bullish recovery. 20 weeks SMA is still staying below
50 weeks SMA keeps longer term trend in bearish mode.
Stochastic has fallen from overbought territory and now it is finding support near
30 supporting a recovery. Immediate resistance is now seen near 37840 any sustained
move above that level would open the doors for a retest to down sloping trend line that
stands near 38400-38500 zones. If sustained and move above 38500 would invite fresh bulls
to jump in and then we will see this commodity heading towards 50 weeks SMA that stands
near 39790 zones. Silver Support is around 37000 zones. If sustained and move below 37000
more weakness possible in this counter and then we will see 36500-35800 zones. Strong support would
remain at 35000 any closing below that level would trigger good down side.
Silver trading range for the week is expected among the key support at 34800 and resistance at 38000.