MCX— Silver: Buy Above 36180 | Stop @ 35700 | Target @ 37590 — 39000
: Sell Below 35700 | Stop @ 36180 | Target @ 34530 — 33360
MCX - Silver Outlook Range breakout for directional move
The technical chart of MCX-Silver September Contract shows Bull Flag Pattern formation. The Silver is trading in a range of 480 points, with support at 35700 and resistance at 36180. The silver rose from 33360 on 6th August 2015 to touch the high of 36180 on August 12, before entering in a range-bound trading. This has formed a Bull Flag Pattern.
As per the chart pattern, a sustained trading above 36180 level will give a breakout to the Bull Flag Pattern and the would further get stronger.
Height of the Pole is 2820 points, the difference between 33360 and 36180. A breakout above 36180 will bring the higher target of 37590, which is the 50% of the Pole. The next target could be 39000, which comes to 100% of the Pole Height.
However, if Silver reverts from the current level of 35930 and trades below 35700 then the target on lower side would be 33360 which was the low from where the rally has started.
