MARKET OUTLOOK OF SILVER 22-23 AUG 2016

Silver:  After six weeks of consolidation, Silver prices finally breached the crucial neckline support of “Ascending triangle” pattern and ended below it. The medium term outlook has turned bearish and according to the pattern the targets are project till 42000 /41800 levels, which is exactly the support of a major trend line support drawn connecting the lower bottoms. The momentum indicator MACD has turned bearish on daily, while on weekly the averages are making negative cross over. Looking at, above scenario, we expect the silver prices to trade lower and will draw down till the support of 42000 levels in the coming sessions. Traders are recommended to sell around 45550 for targets of 44400 then 43000 levels for the week.

	R2	R1	S1		S2	TREND
SILVER	46300	46100	45500		44400	SIDEWAYS

Outlook:  We expect Silver prices to trade negative on the back of US non-farm payroll data released on Friday.