Silver Loses Momentum Bearish Bias Prevails
MCX Silver's recent upward trajectory has stalled, and the price is now showing signs of a potential downward trend. After a brief recovery yesterday, the metal has resumed its downward movement today.
Technical Analysis Points to Bearish Bias:
- Moving Averages: Silver currently trades below the 10-day and 20-day moving averages. This bearish crossover indicates a potential shift in momentum towards the downside.
- RSI: The Relative Strength Index (RSI) is trending southwards and is currently reading at 44.90. This suggests that the metal is losing momentum.
- MACD: The Moving Average Convergence Divergence (MACD) indicator is also showing negative divergence, confirming the bearish sentiment.
Key Support and Resistance Levels:
- Support:
- Immediate support is at the 50-day SMA.
- A break below this level could lead to further downside, potentially testing the 100-day SMA.
- The current week's low remains a crucial support level.
- Resistance:
- The 92,225 and 93,150 levels could act as key resistance points for any potential upward movement.
Trading Strategy:
Given the current technical analysis, a sell-on-rise strategy appears to be prudent. This strategy involves selling Silver on any short-term rallies, aiming to profit from potential price declines. Traders should exercise caution and implement appropriate risk management techniques.
Factors to Watch:
- Global Economic Indicators: Economic data releases, particularly those related to inflation and interest rates, can significantly impact Silver prices.
- Geopolitical Events: Geopolitical tensions and conflicts can influence safe-haven demand for Silver.
- Industrial Demand: Global industrial demand, especially from sectors like electronics and solar energy, can impact Silver prices.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Conduct your own research and due diligence before making any trading decisions.
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