The prices of Silver witnessed a smart rally form the lows of Rs 49538 levels to register a high of
Rs 60819 as on 25th Jul, 2011.
Since then the price have not been able to cross above this swing high and corrected during the previous session.
The price of silver has registered a close below its key near term moving average placed at the Rs 59328 levels.
Another key observation to be made is the breakdown registered on the RSI indicator. The RSI indicator has now given a sell signal as outlined in the chart above.
We believe that the prices of silver will witness correction during the upcoming few sessions of trade and the prices could test its medium term moving average support placed at the Rs 57100 levels.
We recommend traders to sell 50% at current levels and again on rallies to Rs 59100--Rs 59350
levels with a stop loss placed above Rs 59577 levels for downside targets of Rs 57825 / Rs 57100
levels.
MCX SILVER SEPT CONTRACT OPEN Rs 59670.00 HIGH Rs 59698.00 LOW Rs 58130.00 CLOSE Rs 58630.00.
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