MCX Silver under fresh selling; Resistance seen at 48507
Commodity Online | May 26 2020
UPDATED 09:40:40 IST

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Technically Silver market is under fresh selling as market has witnessed gain in open interest by 4.9% to settled at 8802 while prices down 81 rupees.

Now MCX Silver is getting support at 47840 and below same could see a test of 47422 levels, and resistance is now likely to be seen at 48507, a move above could see prices testing 48756.

Silver yesterday settled down by 0.17% at 48257 amid increased risk appetite as more European nations including Spain, Italy, Germany and Greece moved to ease their lockdowns and investors eyed the potential for more stimulus measures.

Heightened tensions between the United States and China over a new Hong Kong security law helped to limit the downside to some extent. Japan has lifted a state of emergency for Tokyo and four remaining areas as the country managed to get the coronavirus infection under control in just one and a half months.

The Nikkei newspaper reported the government is finalizing a plan for new stimulus worth almost $1 trillion to help companies ride out the coronavirus pandemic. Trade tensions remained in focus as Beijing's move to impose security laws on Hong Kong has heightened concerns about the future stability of the city and global trade prospects.

A slump in capital investments, private consumption and exports pushed the German economy into a recession in the first quarter, detailed data showed, giving a glimpse of the damage caused by the coronavirus pandemic. The Federal Statistics Office said capital investments fell by 6.9%, private consumption by 3.2% and exports by 3.1% between January and March compared with the last three months of 2019.

Trading Ideas:
--Silver trading range for the day is 47422-48756.
--Silver prices fell amid increased risk appetite as more European nations including Spain, Italy, Germany and Greece moved to ease their lockdowns.
--Heightened tensions between the United States and China over a new Hong Kong security law helped to limit the downside to some extent.
--A slump in capital investments, private consumption and exports pushed the German economy into a recession in the first quarter.

Courtesy: Kedia Commodities

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