Commodity Trading Tips for Silver by KediaCommodity

SilverSilver yesterday open and once again dropped to 42753 level but later recovered to test 44851 before closed to 44195 down by -0.41 against international silver's gain by +1.44% after rebounding during Tuesday's session as traders resist the temptation to go bargain-hunting with the bullion. Pressure seen on MCX as rupee rose to its highest level in three weeks as a broad selloff in global commodities raised hopes the pressure on the country's record current account deficit will ease and give the central bank more room to cut rates. Also Hedge funds are betting on cheaper silver for the first time since at least 2006, splitting from investors accumulating close to the biggest hoard ever and the market consensus for prices to rebound from a bear market. There were signs of a small pickup in physical demand from India, historically the world's largest bullion consumer. In addition, coin investors and jewelry buyers sought out potential bargains at sharply lower prices. Bullion on Monday shed 11.5 percent and recorded its biggest ever daily fall in dollar terms catching bullion bulls, speculators and veteran investors all by surprise. Silver may still face a headwind after recent signs that U. S. Federal Reserve officials appeared to be nearing a decision to start winding down their bond purchases to end stimulus, even though inflation has failed to materialize as feared during its rounds of post-financial crisis quantitative easing. Now technically market is in oversold as RSI for 18days is currently indicating 16.34, and getting support at 43015 and below could see a test of 41835 level, And resistance is now likely to be seen at 45113, a move above could see prices testing 46031.

Trading Ideas:

Silver trading range for the day is 41835-46031.

Silver ended with losses but some recovery seen as traders resist the temptation to go bargain-hunting with the bullion.

Silver may still face a headwind after recent signs that Fed officials appeared to be nearing a decision to start winding down their bond purchase

Govt cuts Silver base import price to $ 890/kg Vs $ 920