After
completing a cup and handle pattern on the weekly charts we saw that Silver
managed to zoom from 30.66 to 34.28. Again the Inverse H&S pattern formed
on the daily charts added fuel to the rally and helped in taking out the hurdle
of 33.27 and it rocketed till 34.28. However the rim of the cup is at 36 which
once taken will target 49. What Next?
After
forming a top at 34.28, the price is pushing lower, moving towards the awaited
retest level and potential support around 33.27 & 33.50 levels. The overall
bullish formation remains intact; I consider the current retreat as a mere
pullback, only a clear break below 32.67 should be a concern for the current
rally. Traders can buy on dips near 33.5
& 33.27 with a stop at 32.67.
MCX
Silver Dec future closed at 63536. On hourly chart Silver is heading down and
momentum is on downside. However the highs formed near 64200 have now become a
major top on chart and remains strong resistance. And on downside 63160 remains
the support and below that it can slide till 62780 and 62500.
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