MCX Silver has been witnessing a strong up trend since the past one month and touched its lifetime high near 44500 levels. We were able to hint towards the emerging upmove even before it began just with the help of Elliott wave combined with time cycle and indicators.
Just as we expected in the monthly report MCX silver bottomed out near the mentioned zone.
Read below the detailed analysis with explanation on the indicators like Fib-retracement, Time cycles and Detrended price oscillator used for predicting the emerging upmove.Below chart was published in “The Financial Waves Monthly update”:
MCX Silver continuous Weekly chart:(Anticipated as on 08th May 2019)
(Below is the extract of research from the Monthly report published in “The Financial Waves Monthly update”)
Elliott wave Analysis as on 08thMay 2019-Post competing primary degree wave 3 in the year 2011, MCX silver topped out and has been in a downtrend since then with few short term up move. Currently prices are moving in the form of Diametric pattern which is a seven legged corrective pattern within which wave f completed post which it moved lower in the form of wave g. Break above 42000 will indicate termination of wave g and would begin a new leg on the upside. A very important support is placed near 33000 levels.
Fibonacci retracement-Fibonacci retracement is a method of technical analysis for determining support and resistance levels. We have applied Fibonacci retracement of the entire rise that began from the year 2004 till 2011. After MCX silver topped out,it found support exactly near 61.8% retracement. A serious fall is unlikely as long as important support placed at 61.8% retracement stay intact.
Time Cycles-We can clearly see how well cycles managed to capture the lows formed in the year 2013,2015,2017 and once again the precious metal looks to be nearing its another cycle low which is just a few months away, which would also terminate wave g on the downside post which we might begin to see a trending move higher.
Detrended price oscillator– Detrended price oscillator (DPO) is not a momentum indicator but is used to identify cycles with the help of its peaks and troughs. It basically removes trend from price and helps easy identification for cycles. Offsetting or displacing the moving average reduces the number of whipsaws in the average. We can see how well DPO moved in tandem with time cycles and managed to catch majority of the lows; the year 2015, 2017 lows being the recent ones.
In short, for Silver break above 42000 would indicate beginning of a new leg on the upside and a trending move too. We are keeping a close watch on the Time cycles as prices are nearing the cycle low it would be interesting to see if the cycle works out even this time surprising everyone by showing a strong positive move.
Happenedso far…. – MCX Silver witnessed strong upmove since the beginning of July month and made a high of 44500in today’s sessions.
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