Application of Bollinger Bands, Parabolic SAR on Silver.Feb 08, 2021
MCX Silver seems to be exhibiting amazing Elliott wave patterns and with the help of indicators like Bollinger Band and Parabolic SAR we can capture the move effectively.
MCX Silver hourly chart
Elliott wave Analysis-
As per the wave count, wave (b) within wave f(red) seems to have started on the upside but a break above 69150 will confirm the same. Price can move towards 69900 in the form of wave (b).
Bollinger Band & Parabolic SAR –Bollinger band which suggests that prices were taking support at the lower band and then moved towards the upper band. Prices closed near upper bollinger band which is a sign of bullishness for the coming session as long as lower bollinger is intact on downside. The Parabolic SAR is used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. The Parabolic SAR has now confirmed that bullish momentum is just about to ignite and the PSAR has already moved below price and it could not be a better opportunity to go long using the PSAR as a trailing stoploss.
In short, Silver seems to be sideways to positive. A break above 69150 can take price towards 69900 levels while on lower side 66300 will act as a support as of now.
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