MCX May Silver's weakness continues and it declined to
as low as 50423 and finally closed at 51570 levels, down by 3% on W-o-W
basis. It is visible from the chart that silver
prices are traveling in a descending channel, which is signifies the
bearish trend which would be intact until it breaches the channel on the
upside.
However, during the initial session of the week there is a possibility for a mild pull back towards the channel resistance of 52200 levels, which one can unitize for creating fresh shorts. Key momentum indicator RSI has gone into sell mode and MACD is still trading below signal line which supports the view.
Action - Sell
Entry - Near 52200-52250
Target - 50500
Stop - 53110
MCX Crude oil prices have respected the falling trend-line resistance of the triangular pattern and ended in a negative zone. Also we can observe, it has formed a trend reversal candle stick pattern called as "closed marubozu" on weekly charts which is another strong supporting evidence for a bearish momentum in coming sessions and downside targets would be around 5030 followed be 4955 levels.
However, any pull back will be restricted at 5180 levels and bring some selling pressure from the same. RSI-14 period & Momentum indicator both are placed in negative territory supporting the view.
Action - Sell
Entry - 5170-5180
Target - 5030/4955
Stop - 5277
However, during the initial session of the week there is a possibility for a mild pull back towards the channel resistance of 52200 levels, which one can unitize for creating fresh shorts. Key momentum indicator RSI has gone into sell mode and MACD is still trading below signal line which supports the view.
Action - Sell
Entry - Near 52200-52250
Target - 50500
Stop - 53110
MCX Crude oil prices have respected the falling trend-line resistance of the triangular pattern and ended in a negative zone. Also we can observe, it has formed a trend reversal candle stick pattern called as "closed marubozu" on weekly charts which is another strong supporting evidence for a bearish momentum in coming sessions and downside targets would be around 5030 followed be 4955 levels.
However, any pull back will be restricted at 5180 levels and bring some selling pressure from the same. RSI-14 period & Momentum indicator both are placed in negative territory supporting the view.
Action - Sell
Entry - 5170-5180
Target - 5030/4955
Stop - 5277
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