Sell MCX Silver; may slip to Rs 40800-40500: Sharekhan

Silver losing shine: Sharekhan

MCX silver is following a falling trend channel on the four-hour chart (Check the pdf for chart). Currently it is near the upper trend line of the channel. A bearish engulfing candlestick pattern and a negative cross-down on the key moving averages suggest further weakness in the counter. The other technical observations are: the Parabolic SAR is above the current market price valued at Rs42,160, the Relative Strength Index is valued at 40.50, the Positive Directional Momentum Indicator is valued at 16 and the Negative Directional Momentum Indicator is valued at (27). On rises till Rs 41,600-41,750, one should sell for a downside target of Rs40,800-40,500 levels. Trade above Rs 42,200 will negate the bearish view.

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