There were rumours traveling around about Silver that the import duty in India hiked. But please traders, beware of this fake news. Till now, we did not receive any authenticated information about the import duty of silver.
Though on Friday, the import duty on gold rose by 5 percent and stood at 12.5 percent, the Government declared a written confirmation on Friday. The major reason for this hike in import duty was to control the demand for the yellow precious metal. Precisely, India is the second-largest consumer of gold after China. Therefore, in order to reduce the trade deficit, the government took this step to strengthen our currency. As a result, may progressively improve the economic health of our country (India).
Now, let’s move further and discuss in detail some interesting facts about silver.
Looking at the monthly chart. Silver has formed a double-bottom pattern during the time of the COVID-19 outburst. Moreover, Silver made a breakout and test its level of $30. However, for 18 months, we are continuously witnessing a downside movement in Silver.
But the end is over now…!!
We are witnessing silver in downside panic because it is testing its support level but we may experience an upside rally soon.
Furthermore, we may anticipate a breakout in silver above $30 which is currently trading around $20. Moreover, $19 tends to be a major support level. If the level of $19 breaches, then we may witness a downside target of $17.50 to $16.80.
$17.50 — $16.80 seems to be the worthy level for those who want to sit in a buying zone.
We are not at all expecting silver to breach the level of $11 in the short to medium term unless and until any major news comes out from developed economies. Moreover, due to some unusual events, if silver goes below $11 but would not resist for a longer tenure. Consequently, an early bounce back may experience soon in Silver. (In the worst scenario)
For 50 years, Silver has never broken a level of $50. No doubt, silver is under pressure and unable to perform but fundamentally, $20 for silver considers not that bad level for traders.
After a long consolidation phase, we may experience a reversal in Silver soon.
If silver does not breach the level of $19 then we may see upside targets of $23 to $25.
Looking into the daily chart, the RSI of Silver is trading around 29 which itself signifies a good buying opportunity. As per the charts, we are not expecting more downside panic in Silver. Any sharp decline could be the best-buying investment opportunity for traders.
For Positional Traders(MCX)
Traders may buy silver(MCX) above 59000 on a closing basis thereby maintaining a strict stop loss of 57500. Moreover, we may witness targets from 60500 to 61200 and further targets till 63000.
MCX vs Comex(Silver)
For the past 3 months, we are experiencing Silver MCX Futures in a bearish zone as compared to comex silver. Consequently, freefall panic in the rupee sustained the prices of precious metals.
Furthermore, if silver MCX breaches and touches the level of 57500 then we may witness a downside target between 55000-53000. Silver has major support at 50000 levels.
US market is closed today on account of Independence Day
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