Thursday, 28 August 2014

Time to Call Medium Term Bottom for MCX SILVER


MCX GOLD (Closed at 41933, Down 0.14%) has recently taken the support near 61.8% retracement of the up move from 39465 to 46400. Further more, the zone of 41700 and 42500 was the strong support zone. Prices have started rising and gaining buying momentum. Even the formation of higher tops and higher bottoms comes into picture on smaller time frames.

Technically, the commodity might retrace 50-61.8% of its previous fall from 46400 to 41780 and target 44000 to 44600 zone. The down trend is losing its catch and giving bulls the hold on the white metal. It may be too early to call it a intermediate term bottom but is is definitely a short term bottom and further if markets close above 44800 which is a major resistance zone, the bottom of 41780 might hold for intermediate term.

Buying can be initiated near 42300-42400 with SL below 41750 for the targets of 44000 and 44600. The traders who have short positions in the commodity, it is the time for them to be cautious and use strict Stop Losses.


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