Technical Analysis of Silver Futures (MCX) - 4H Chart

22 Sep 2024

Silver prices are approaching critical levels, with the price currently hovering around ₹90,080. Recent price action has shown a breakout from a descending wedge pattern, signaling potential bullish momentum ahead.

Key Observations:

• Wedge Breakout:
  

A classic descending wedge pattern has been broken, indicating a shift in market sentiment toward bullishness. The breakout, accompanied by strong volume, suggests further upside potential if the current momentum sustains.

• Fibonacci Extensions & Resistance Zones:

1. The price is testing the key resistance zone around ₹90,332, as seen from the Fibonacci extension levels.
   

1. A further breakout could push prices towards ₹92,497, followed by ₹94,477 in the near term, with the ultimate target around ₹96,274.

1. Volume Profile: The volume profile shows significant accumulation between ₹85,816 and ₹90,332, making this range a pivotal area for price action. A sustained breakout from the current level could lead to further bullish momentum, while rejection may see prices retracing back toward ₹85,816.
   

1. Measured Move Target: From the wedge breakout, the measured move points to an 8.5% potential gain, with a target price of ₹94,477. This aligns with the key resistance zones visible on the chart.
   

1. Bullish Momentum: The recent bullish momentum has pushed Silver futures above several key moving averages, confirming the shift from bearish to bullish sentiment.
   

Conclusion:
With the wedge breakout and price testing key resistance levels, traders should monitor whether Silver can hold above the ₹90,332 level for confirmation of further upside. If the resistance is breached, expect a rally toward ₹94,477 and beyond. However, failure to hold this level may see a pullback toward ₹85,816.

26 Sep 2024

Dagangan ditutup: sasaran tercapai

first target hit, exit or trail your SL to 91,720