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  5. MCX Silver sustains bullish momentum, strengthens above inverse head and shoulders; check trade setup

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MCX Silver sustains bullish momentum, strengthens above inverse head and shoulders; check trade setup

Upstox
By Upstox News Desk

3 min read | Updated on March 12, 2025, 18:21 IST

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SUMMARY

MCX Silver has broken out of the inverse head and shoulders pattern, though not decisively. This bullish reversal pattern signals a potential shift from bearish to bullish. However, if the price drops below the breakout candle, the pattern will get invalidated.

Gold extends range-bound movement for the 19th consecutive session. | Image: Shutterstock

Gold extends range-bound movement for the 19th consecutive session. | Image: Shutterstock

Market recap (as of 6:15 pm)

  • Gold 4 April Futures: ₹86,170/ 10 gram (▼ 0.02%)
  • Silver 5 May Futures: ₹98,320/ 1 kg (▲ 1.21%)
  • Crude Oil 19 March Futures: ₹5,864/ 1 BBL (▲ 1.28%)
Gold: The yellow metal was flat on Wednesday, with April futures trading 0.01% higher at $2,921 an ounce. Gold prices held steady ahead of key U.S. inflation figures due later in the day. Investors were awaiting the release of the U.S. Consumer Price Index (CPI) data, which could provide insight into the Federal Reserve's future interest rate decisions. Meanwhile, silver was trading higher, up 1.18% at $33.53 per troy ounce in the futures market.
Crude Oil: International crude oil futures traded higher today, with Brent futures trading at around $70.22, up 0.93%, while WTI crude oil traded 1.04% higher at around $66.94. Oil prices were supported by a weaker dollar. The U.S. Dollar Index, which fell 0.5% to a fresh low for the year of 103.195, boosted oil prices by making crude less expensive for buyers holding other currencies.

Technical structure

Gold: The prices of yellow metal extended the range-bound movement for the 19th consecutive session, trading in a range of ₹86,500 to ₹84,000. It formed a bullish candle on the daily chart on March 11th, indicating consolidation around the all-time high zone. For the directional clues, traders can closely monitor the range of ₹86,500 to ₹84,000. A break of this 19 day consolidation with a strong candle during intraday and on a closing basis, will provide further directional clues.
Image_1.webp
Silver: Silver extended the bullish momentum for the second day in a row and is inching closer to the immediate resistance zone of ₹1,00,000 on the daily chart of MCX’ May futures.

As shown on the chart below, Silver has given the breakout of the inverse head and shoulder pattern, although not a clean one. The inverse head and shoulders is a bullish reversal pattern that signals a potential trend change from bearish to bullish. If the price falls below the breakout candle after confirming the pattern, it becomes invalid.

Image_2.webp
Crude oil: Crude prices extended the consolidation for the fifth day in a row and is currently trading within the range of March 5th. On the daily chart of MCX, crude prices have an immediate resistance zone around ₹5,946 and support is visible around ₹5,761. Additionally, it is forming a bearish pole and flag pattern on the daily chart. A breakout above the immediate resistance zone of ₹5,946 will invalidate the pattern.
Image_3.webp

The open interest (OI) data for the March 17 expiry saw significant put open interest build-up at 5,800 strike, indicating support for the crude around this zone. Conversely, the call OI base was seen at 5,900 strike, reflecting resistance for crude around this zone.

Image_4.webp

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for the client's consumption, and such material should not be redistributed. We do not recommend any particular stock, securities, or strategies for trading. The securities quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely to show how to do analysis. Take your own decision before investing.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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