Silver Mini Aug In Buying Recommended: Angel
CommodityOnline | Aug 11, 2014 01:09AM ET
Looking at bullish chart formation and retreat from 50% Fibonacci retracement level coupled with oscillators indicating optimism. Hence, we recommend buying in MCX Silver Mini Aug contract.
In the above chart, MCX Silver Mini Aug contract, prices were trading in a lower trend since last few trading session. At present, prices have breached the short term down trend line and trading above the same. It is also observed that prices have taken support on the trend line at around 43,400 levels and bounced from it. Overall, prices are trading higher after making a low of 39,610 levels in June 2014. As per the Fibonacci retracement, prices bounced back from 50% retracement levels of leg “AB” and trading above it.
Indicator Analysis
On the oscillator front, 14 day RSI is falling and currently it is reading at 45, while the 5 and 20 Day EMA (Exponential Moving Average) is also showing positive crossover indicating positive momentum.
Key Levels
Prices resistance can be seen at 44,800 levels followed by 45,500 mark, while support is seen at 43,400 levels and followed by strong support at 42,800 levels.
Looking at bullish chart formation and retreat from 50% Fibonacci retracement level coupled with oscillators indicating optimism. Hence, we recommend buying in MCX Silver Mini Aug contract.
Positional Call - Buy MCX Silver Mini Aug between 44130 - 44230, SL - 43400, Target - 45350 (CMP - 44230)
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