MCX Silver has been moving in an overlapping manner. So it is not easy to gauge one side directional trend. However to ride on the overlapping short term moves it is advisable to look and shorter/ lower time frames to capture small moves.
We have been using channels and Ichimoku cloud to understand and capture the direction of prices movements and based on consolidation- breakout strategy we were able to give commodity intraday call on Silver.
MCX Silver Fut 15 min chart with ichimoku cloud
We have shown 15 min futures chart of MCX silver, wherein we can see prices are precisely moving with the black channel. The metal has always protected channel support and bounced off from the same on the other hand, prices have been intact with channel resistance and reverse from there. Such support and resistance can help you understand the basic movement of prices over short term.
As per Ichimoku cloud, we can see that prices consolidated below the cloud for some time and again re-tested the cloud. This scenario will double confirm your price action that can be continued to move on lower side. Also the base and conversion lines are in sync by placing it above the prices. For entering the trade we can see multiple touch points were prices consolidated several times. Here it was near 60800 levels were we gave sell call on intraday perspective.
Today successful call given to intraday clients:
Call given at 2.13pm: SILVER DEC FUT SELL BELOW 60800 SL 61000 TGT1 60700 TGT2 60500
TGT 1 achieved at 2.24 pm: SILVER DEC FUT SELL CALL GIVEN TGT 1 ACHIEVED AT 60700
TGT 2 achieved at 2.40 pm: SILVER DEC FUT SELL CALL GIVEN TGT 2 ACHIEVED AT 60500
Isn’t it simple to capture the instant down move?
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