Silver price has traded negatively for past couple of sessions and in recent sessions, it has been reversed from its support lows. MCX Silver is heading towards 72,000 levels whereas Comex Silver has started trading over $23.
Comex Silver has sustained over the support low of $22.40 levels currently and we can observe gradual rebound in Silver price. Here, immediate resistance would be at 200-EMA level placed at $23.20. If the price break through this resistance, we may expect a further upward move and next hurdles would be at $23.79-$24.80 respectively.
On Daily chart, MCX Silver future has formed Symmetric Triangle formation and price sustained over the support-line of the triangle. The key support on Daily chart is at 200-EMA level placed at 70,399. Immediate hurdle on Daily chart is at 50-EMA level placed at 72.400 level and if price break through is hurdle, we may expect further Bullish momentum.
Gold/Silver ratio, which is also known as Mint ratio, started falling from its recent peak of 85 and approaching towards 80-78 support levels. This fall in ratio is favorable for the Silver prices. After a sustained upward movement, the dollar index has begun to reverse from its peak of 106 and has started trading below the 50-MA support level, which is located at 105.85 on the 4-hour chart. Decline in the greenback is advantageous for the Metals.
The momentum indicator. RSI is trailing around 50 level on Daily and Weekly chart. On MACD, there is a Bullish crossover below zero-line with emergence of positive histograms on 4-hour chart. These show positive biasness in Silver price.
Based on the above technical, we may anticipate Bullish trend in Silver in upcoming sessions and traders may look forward for Long position for 74040-75800 levels.
(- Written by Lakshya Arora)
