Shown below is the daily chart of MCX Silver. Note the following:
- The commodity had been trading in a sideways movement since May this year forming a rectangle between 28200 and 30000 levels;
- Last week it broke out of this sideways move with a big white candlestick and crossed the life-time-high of 30200;
- It has begun tagging the upper band of the Bollinger Bands which adds strength to the break-out;
- RSI, which was moving between 40 & 60 levels during the sideways trend, has moved above 60 indicating a range shift;
- The rectangle pattern will fail if it closes below 30000 on a weekly basis.
One can go long on Silver at CMP as well as on dips to 30000 with stop loss of 28800 for targets of 30800, 31500 & 32000.
MCX Silver Future – Daily
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