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MCX Silver March Targeting 40800: Angel

ByCommodityOnline
Published 02/04/2014, 06:39 AM
Updated 05/14/2017, 06:45 AM

Chart 1

MUMBAI: MCX Silver prices after making a high of 59942 in the month of August 2013 fell sharply lower towards 45950 levels. Later prices rallied sharply towards the R2 at 50350 levels but could not sustain fell back sharply lower and have been consolidating between S1 at 43600 to R1 at 45800 levels since November 2013 till January 2014.

As seen in the continuous Weekly chart above, MCX Silver prices which have been consolidating between the lower trend line Support S1 at 43600 and the upper trend line Resistance R1 at 45800 levels has finally broke the lower trend line Support S1 at 43600 levels on 31st January 2014 and closed below the S1 levels.

Hence as per the consolidation lower breakout pattern Silver prices will now find very good resistance at the broken trend line Support S1 at 43600 levels and then move sharply lower towards the expected target price at 40800 levels as per the consolidation breakout pattern. If prices sustain below 40800 levels then extended fall can be expected towards 40000 levels.

If prices sustain or close above 43600 levels then the breakout pattern would be negated and thereby prices can move higher towards the R1 levels at 45800 levels.

Multiple closing above the R1 at 45800 levels would trigger an upside breakout of the consolidation pattern and thereby new leg up can be expected initially towards the minor resistance at 47250 levels and then finally towards the Previous R2 at 50350 levels.

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