MCX Silver: The Path to 1,11,000 or a Dip to 80,000?

Timeframe: Daily
MCX Silver has been trading in the ascending channel for over 150 weeks. The channel consists of choppy moves and mixed sentiments of bears and bulls. The price has formed two excess prices on the upper band and two on the lower band, with one excess as a tail. The control line is capable of providing more than 18 touches, showing a strong pivot zone in the channel.

The price has just taken support from the 200 EMA and is currently trading near the 100 EMA. There was only one crossover between these moving averages at the end of 2023. Additionally, backtesting the past moves of the channel, we can see that whenever the price touches the lower band, a bullish move toward a new high tends to follow. The same condition occurs here. However, there have been three breakout attempts, two of which turned out to be excesses, and the third was not able to touch the upper band of the channel.

At this glance, the price is moving near the channel’s control line, which can potentially change the price direction. Traders should wait and let the price decide its move by observing the control line of the channel. A bullish scenario is possible after the breakout of the control line, which could lead the price to a new high. Short-term targets could be 95960-98160-99600. After the breakout, we can see a massive move up to 1,11,000.

The reversal will play a crucial role in Silver’s projection, as the price may go for a pullback, but bearish strength could drive the price near the support level of 80,000 in case of a breakout below 86,000.