Capitalizing the down trend of MCX Silver with the application of basic techniques like Channels and Moving average along with Elliott wave theory.
Precious Metals have been underperforming from medium term perspective. Silver is intact in downtrend since July 2016. Few weeks back there was a positive attempt however after the same prices have failed to cross above 43000 and since then it has been moving lower sharply. Basic technical analysis along with Elliott wave application provides previous wave support and resistance areas and break of which provides confirmation for the next trend. As soon as Silver broke 41000 level, we advised our subscribers to use sell on rallies strategy and prices have been moving in lines with our expectations. In last few days Silver has cracked down from 41000 to 38500 levels. In this entire down move prices have been following 20 periods EMA and Channeling technique very well which is most important technique to follow understand the trend. Below part of research is taken from “The Commodity Waves Short Term Update”.
Silver 60 mins May contract chart: (Anticipated in the morning of 26th April 2017)
Silver 60 mins May contract chart: (Happened till now)
(Part of research taken from 26th April 2017)
“As shown in 60 mins chart, prices are intact in downward moving channel and 20 periods EMA is acting as strong resistance. In the last session also prices failed to move above this EMA and reversed on downside sharply. As of now this commodity is testing the channel support however any rally is going to be short lived in nature. On upside 41000 followed by 41200 will act as an important resistance.
From intermarket perspective, Comex Silver is failing to move above the high of prior bar from last 7 sessions. Now as long as we do not see close above prior bars high bias will remain on downside.
In short, Silver trend is negative. Use move towards 40700 as selling opportunity with 41200 as strict stop loss and then move towards 40200 is possible.
(Part of research taken from 27th April 2017)
“As shown in 60 mins chart, Prices have broken the downward moving channel on downside which suggests that bears have the full control. 20 periods EMA has continued to act as important resistance so as long as this EMA is intact on upside trend will remain on downside. Looking at the oversold nature of RSI some consolidation cannot be ruled out. 40360 is the important resistance on upside.
In short, Silver trend remains on downside. Use sell on rallies strategy as long as 40360 is intact on upside. 39500 is the next level to watch.”
(Part of research taken from 28th April 2017)
“post the completion of wave (c) near 42700 levels prices exhibited a sharp move on downside and is protecting the previous bar high from past 9 days. Also the 20 periods EMA is still acting as resistance to the price which further indicates negativity. So as long as the daily bar high is protected and 20 periods EMA is intact on upside the trend to this commodity will be negative. Trader can use sell on rally strategy in order to gain from this trend.
In short, bias for Silver is negative where 40000 is an important resistance. Move towards 39800 levels can be used as a good selling opportunity for the target of 39500 and below levels.”
Happened: The above research clearly shows our strategy was to sell Silver on each rallies to capitalize the down move and prices have moved in lines with our expectations. Such trend can be captured when one follows the objective technical tools.
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