The price of silver witnessed a sharp correction from the highs of Rs 66490 levels as on 20th Aug, 2011.
The recent swing low brought the prices of silver towards its ascending trendline support
and its key moving average clusters.
But, the key observation to be made on the chart above is that, the formation of the two bar bullish reversal pattern has signaled that the price of silver has established support at its ascending trendline and would trade with a bullish bias from here on over the near term to short term.
We believe that the price could now rally towards its recent highs of Rs 66490 levels over the upcoming few sessions of trade.
The MACD indicator is also trading in buy mode despite the recent correction. We recommend traders to buy 50% on dips between Rs 61450--Rs 61600 levels and again on dips to Rs 61100--61000 with a stop loss placed below Rs 60517 levels for upside targets of Rs 63800 / Rs 64500 levels, expected to be achieved over the upcoming 3-4 sessions of trade.
MCX SILVER SEP. CONTRACT OPEN Rs 59947.00 HIGH Rs 62200.00 LOW Rs 58882.00 CLOSE Rs 61951.00
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