MCX Bullion market Analysis for the week (16/6/2014 to 21/06/2014)
By R. M.Basha
Silver market in Mcx last week has been appreciated 4.24% which is highest since February 2014.Silver(USD) appreciated 4.09%
What is favouring for the market is
1. High volume
2. Incresed in open interest
3. Broken important supply line
4. Demand increased (Based on Equilibrium of Index Analysis)
Our expectation for next week silver remains bullish. Expecting silver at Mcx can go up to 42800 there is multiple resistance from 42800 to 43200 levels
Range resistance in Silver -USD at 20.16 and 20.39.
T.M. count for Friday was 7 which means Monday must be a bull trend. Tuesday or Wednesday will be a bullish reversal is highly possible .there after countdown will start.
When we are looking at last 100 days trend: price ——-up , volume —-average , open interest —–average
Last 7 days open interest has been dropping at higher levels which mean the institutional investor not holing their position at higher prices.
A short term bullish runs going to exhaust at 42800 levels. (Wednesday may be a bearish engulfing)
A sudden increase of volume and open interest could take the market into higher level but retracement is expected before it.
Gold is also following silver .Above chart show how exactly resembles silver .same kind of resistance has been visible in gold .market can go to 1290 and resistance at 1310.
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