LET THE MARKET TELL WHO WE ARE

A very nice basing formation has emerged in silver and currently it is trading at 37562. A cup and handle pattern is clearly visible on daily chart and now silver is consolidating to form handle of this pattern. Yesterday silver took support at 30 days SMA and jumped nicely and today it has climbed above 5days EMA triggering bullishness in this counter. Stability above 30 days EMA remains supportive for silver bulls. However, a bearish cross has taken place on MACD indicator but still this indicator is staying in bullish territory and remains supportive for bulls. Immediate support is now placed at 36800 any failure of this level will put current cup & handle pattern in doubts and any sustained move below this level will bring attempts towards 35800 zones and further stability below 35800 will call for retest to floor of this cup near 33000 zones . Stability above 36800 remains extremely bullish and established move above 38000 will offer a primary rally towards 40500 and then ...

Domestic markets have responded positively to union budget 2016 and today NIFTY witnessed a rally of 235 which is largest intraday gain in last 1 year. A double bottom pattern has emerged on price chart and technical indicators are showing bullish divergence at the same time which is supportive for bulls. However, MACD indicator has been staying in bearish territory but a cross above its signal line hints weakening bearish momentum and divergence on this indicator hints strengthening bulls. 14 periods daily RSI has also formed a bullish divergence which is also supportive for bulls. On price action front NIFTY is now approaching towards descending trend line resistance and horizontal line which has flipped to resistance near 7260 zones. In case of stability above 7260 it will confirm a double bottom and descending trend line break and then a primary rally towards 7520-7600 zones can’t be ruled out. Support will remain at 7030 failure of this level seems less likely in case of fai...