Chart Idea- MCX Silver
We have seen a massive upside rally in MCX Silver from the last 15 trading sessions. On Friday, it formed bearish hold pattern on the chart which indicates that the correction we were waiting for is not far away.
Silver has support at 73500 and resistance at 78000. We expect it to correct 38.2% from its peak which is around 66000 and our expectation is supported by the formation of Bearish Hold Pattern on the daily chart. (As shown in the chart)
If silver able to break and close below the support level of 73500 then it confirms it’s the pattern for the downside target of 68500—66000 else it could test its resistance level of 76500—78000 again.
More and more upside rally will see on a close above 78000. The overall trend is highly bullish in silver as you know that above 73600, our medium to long term target is 1,13,600 but after a short term correction.
MCX Silver will definitely give you the best buying opportunity in the corrective range of 38.2% to 50% i.e 66000—63000.
Sell MCX Silver mini below 73500 (If close). Add more lot around 76500. Stop-loss above 78000 on a closing basis, for the downside target of 66000.