Today we discuss a commodity for the first time!
In the daily chart of SILVER given below, you may note the Range Shift in RSI corresponding to the change in price trends. During the Uptrend, RSI has maintained a Range of 35-70 whereas in the downtrend, the range has shifted to 20-50.
Like the range shift loyalty, amazing reliability has come from the Bollinger Bands. The upper band has shown commendable resistance every time the RSI shifted to the Bullish Range. Given that, in the current range shift also, the upper band level of 36300 is expected to be a good resistance. However any move below the 34200 level and failure of RSI to move above 50 would mean a dismiss of this analysis.
On the Weekly chart of SILVER given below, we study the Bollinger Bands.
Every constriction on the bands in the SILVER WEEKLY chart has resulted in a sharp move. Presently, there is evident constriction between the bands and keeping in view the weekly RSI’s strong support at the 40 level, we can conclude SILVER is expected to move up from here with a different and riskier target of 40000, i.e. till the upper bollinger band.
UPDATE (10th Sept, 2015, 10:50 AM)
silver ready to bounce again, after touching a high of 35988, it has taken support at ~35260, the sl changed to 35200. anyone who would like to make up for the missed opportunity, now is a good time.
Thank you for reading!
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