MCX Silver seems to be exhibiting amazing Elliott wave patterns and with the help of indicators like MACD and Parabolic SAR one can identify the right entry and exit points along with trailing stoploss.
Look below the chart and detailed research on MCX Silver taken from our Monthly research report – “The Financial Waves Monthly update”
MCX Silver continuous weekly chart
(Below is the extract of research from the Monthly report published in “The Financial Waves Monthly update”)
Elliott wave Analysis–
Price moved in the form of Diametric pattern since mid of 2012, which is a seven legged corrective pattern. This diametric pattern got completed near 36000 levels as the last falling segment i.e. wave g was taken out in faster time.
As the current rally in price is clearly subdivided into 5 waves and fits all the criteria for an impulse wave, we can conclude that the next leg on the upside has begun and an interim low has formed near 36000 levels. The internal counts on the daily chart suggest that wave v (red) is unfolding on the upside. The fifth wave is often the largest wave in commodity markets and this wave can continue to take price towards …. or higher levels as far as …. remain intact on the downside.
MACD & Parabolic SAR -The MACD indicator is a momentum indicator based on the difference of the 12 and 26 EMA. The MACD line crossing above the signal line indicates rising momentum. We can see on the weekly chart MACD is about to cross the signal line on the upside and both are already above the zero line. The PSAR works best when the market is trending one can use this indicator with a simple strategy that when price breaks above the PSAR long positions can be initiated and vice versa. The MACD 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.
P.S – Levels are hidden purposely as this study can only be used for learning purpose.
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