MCX Silver has been moving in range of 38500-39300 since start of October. We have been using Bollinger bands which have been working amazingly to capture this range. It is important to enter the trend as early as possible to get good returns.
Below is the hourly chart of MCX Silver with detail analysis using Bollinger Bands indicator combined with Elliot Wave theory which was published in our commodity research report “The Commodity Waves Short Term Update”
Silver Dec 60 mins chart:(Anticipated in the morning of 29th October, 2018)
Silver Dec 60 mins chart: :(Happened as on 29th October, 2018)
(Below is the gist taken from Commodity report published in the morning of 29th October, 2018)
Elliott Wave analysis:
Silver has been moving in range since quite some time and are moving in overlapping fashion. A break of the range is now required for a clear trend to emerge.
As shown on the hourly chart, prices are moving in a broad range of 38500 and 39300. We are showing Bollinger Bands on the chart which is the best technique that can be adopted during sideways market. During such scenario buying near the support of the bands and selling near the resistance can be used. We can see that the bands have been working well and prices have reversed back exactly near the resistance area. Now a break below the lower end of the band will infuse selling pressure. However if we see a reversal from the lower end of the band move towards the upper end can be expected.
In short trend for Silver is range-bound to negative and a break below 38600 can take prices lower towards 38400 or lower levels on the upside 38900 needs to be intact for the scenario to be valid.
Happened: Prices witnessed a steep fall taking out its important support level of 38600 and made a low near 38200 in single trading session.
The above research shows in-depth application of Elliott wave along with indicators like Bollinger Bands and Channels. Subscribe now to “The Commodity Waves Short Term Update” and get insight into Gold, Silver, Crude and Copper with detailed charts and crucial levels to watch. Subscribe here.
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