Silver Quant Analysis- 31 Jan ’19

MCX Silver Mar. Futures technical chart has taken the formation of “megaphone chart” pattern in daily time frame. Last few sessions ended up bullish in trend along with some corrections inside the channel,where the market is expected to continue on the bullish trend. The continuation of the trend will be confirmed once the prices breaks above a key resistance holding at 40,600. The positive rally could be extending all the way up to 40600-40800 levels in the upcoming sessions. An alternative scenario indicates that if the key resistance holds strong then the market might retest the same and revise the trend to bearish ones again. The downside rally could test up to 40200-39900 levels. Key support holds at 3900.