Silver market under long liquidation; Support seen at 38212
Commodity Online | December 14 2018
UPDATED 10:29:54 IST

MCX Mentha Oil under long liquidation; Support seen at 1621.4

MCX Aluminium under fresh buying; Resistance seen at 149.2

MCX Nickel under short covering; Support seen at 891

MCX Zinc likely to move in a range of 190.8-200.4

MCX Copper under fresh buying; Support seen at 443.4

Technically Silver market is under long liquidation as market has witnessed drop in open interest by 1.17% to settled at 19114.

Now MCX Silver is getting support at 38212 and below same could see a test of 38069 levels and resistance is now likely to be seen at 38510, a move above could see prices testing 38665.

Silver on MCX settled down 0.53% at 38356 as the dollar rose and investors latched on to gains in global stocks. The number of Americans filing applications for jobless benefits tumbled to near a 49-year low last week, which could ease concerns about a slowdown in economy.

The dollar gained helped by a dip in the euro after the European Central Bank reduced growth and inflation projections for next year and said the balance of risk was tilted toward the downside. Also weighing on bullion was an upbeat sentiment for risk, with global stock markets receiving a boost on signs of easing U.S.-China trade tensions.

Markets would now be turning their attention to the Federal Open Market Committee (FOMC) meeting on Dec. 18-19, with the focus on the future path of interest rate hikes in 2019. European Union leaders assured Prime Minister Theresa May that the Brexit treaty she agreed last month but is struggling to get through UK parliament should not bind Britain forever to EU rules.

The European Central Bank formally ended its 2.6 trillion euro crisis-fighting bond purchase scheme on Thursday but promised to keep feeding stimulus for years into an economy struggling with an unexpected slowdown and political turmoil.

US import prices fell by the most in more than three years in November as the cost of petroleum products tumbled and a strong dollar weighed on prices of other goods, reflecting subdued imported inflation in the near term.

Trading Ideas:
--Silver trading range for the day is 38069-38665.
--Silver prices dropped as the dollar rose and investors latched on to gains in global stocks.
--The number of Americans filing applications for jobless benefits tumbled to near a 49-year low last week, which could ease concerns about a slowdown in economy.
--Fed’s Powell’s comments that US interest rates are closing in on “neutral” levels were seen as an indication that policymakers may pause the programme in new year.

Courtesy: Kedia Commodities

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