Silver daily movement can look very tricky especially when it is trading in a range.
But if we apply simple technical analysis method like support and resistance zone along with Elliott wave pattern the chart makes all the more sense and provides high conviction trade setup.
Now look at below Silver 60 mins chart with no markings. This looks like a random movement.
Silver 60 mins chart:
Now look at Silver chart below along with marked Support and Resistance zone and Elliott wave counts. This current ongoing pattern is double Flat corrective pattern where first Flat correction is connected to the 2ndFlat corrective pattern with wave x in between. To get more clarity apply an indicator say RSI and see the support and resistance zone for this indicator itself.
MCX Silver60 mins chart : ( March Contract)
In the morning report of “The Commodity Waves STU” which is a daily research report covering Gold, Silver, Crude, Copper we published the following:
For MCX Silver in yesterdays update we mentioned that, “any move below 44350 will continue the down move towards 43800/43700 where support is placed.”
As expected, after breaking the support of 44350, price quickly moved lower till 43600. Now, same as Gold, MCX Silver prices have arrived near the support level from where it has bounced back many times.
As shown in 60 mins chart, in yesterday’s trading session prices arrived near the support of horizontal line and consolidated for 6 hours. Opposite to Gold, the fall from 45500 to 43600 look impulsive in nature. Now, to continue the down move it is imperative for prices to move below the important support…
So what should be trading strategy from here on and the probable direction of breakout?