MCX Silver under fresh selling; Resistance seen at 40031

Technically Silver market is under fresh selling as market has witnessed gain in open interest by 2.78% to settled at 14160 while prices down 226 rupees.

Now MCX Silver is getting support at 39836 and below same could see a test of 39751 level, And resistance is now likely to be seen at 40031, a move above could see prices testing 40141.

Silver on MCX settled down 0.56% at 39920 after U.S. President Donald Trump’s State of the Union address failed to offer fresh evidence of progress in the U.S.-China trade talks. However, lingering concerns about U.S.-China trade disputes and the Federal Reserve’s recent comments on rate hikes limited the metal’s losses.

Ahead of a fresh round of negotiations in Beijing next week, Trump said a new trade deal must include real structural change to end unfair trade practices, reduce chronic trade deficit and protect American jobs.

The U.S. will likely increase tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent if the two sides cannot reach a deal by the March 1 deadline. Trump used his second State of the Union address to call for bipartisanship and unity but at the same time vowed to build a controversial wall along the U.S.-Mexico border, raising the prospect of another government shutdown.

Data released by the Commerce Department showed the U.S. trade deficit narrowed by much more than anticipated in the month of November. The Commerce Department said the trade deficit narrowed to $49.3 billion in November from a revised $55.7 billion in October.

The Labor Department, which was expected to release its preliminary report on labor productivity and unit labor costs in the fourth quarter, said non-farm business productivity and all unit labor costs data are not available for fourth quarter and will be released in the future.

Trading Ideas:
–Silver trading range for the day is 39751-40141.
–Silver dropped after U.S. President Donald Trump’s State of the Union address failed to offer fresh evidence of progress in the U.S.-China trade talks.
–However, lingering concerns about U.S.-China trade disputes and the Federal Reserve’s recent comments on rate hikes limited the metal’s losses.
–U.S. will likely increase tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent if the two sides cannot reach a deal by the March 1 deadline.

Courtesy: Kedia Commodities