IF we look at the daily chart of SILVER FUT. we can see that it has made the FALLING WEDGE chart pattern, and also able to move out from the resistance level but yet not given a confirmation of this level.
as per candlestick pattern we can see that at this bottom support it has given a “bullish engulfing pattern” on 27th sep 2013 with the high level of 50215 so one more close above this level only confirm the reversal.
if we look at the chart silver has given a “GAP UP” from 48150 to 49900 recently, so its look like it has filled up this gap now, but sill reversal is not confirm.
another thing we can notice is silver has given a “POSITIVE CONVERGENCE” signal on chart, but confirmation can come only above moving the trendline level.
so overall chart pattern of silver indicate that, if silver able to given close above 50500 level then take long position, with recent low as sl {which is now at 48000 level} and wait for targets till 54500-58500 levels.
if silver able to give close below 48000 then only look for selling opportunities on sell side with 51000 sl on closing basis which can give us down levels till 45000-42000.
so ultimate study output inform us that, if silver moved beyond 48000 and 50500 on closing basis then in that direction take the position, for more movement with the direction.
till silver trading in this range and not giving close beyond expected levels, one can take intraday position near this levels for buying and selling with respective and low levels are SL because this can give us opportunities to trade with small sl and big movements.
note – 48000 and 50500 are not levels to consider for intraday high’s and low’s, we can found different high and low for the day, this levels are for positional purpose only.