You can see gap up opening on this 4 hourly mcx silver chart. This gap is created because of the Fed rate hike event. Banks and hedge funds were with the strategy of ," sell on rumours & buy on facts." This strategy push up price heavily on comex. At the same time MCX was closed. Result is that at the morning, on the opening bell, Silver price on MCX updated itself to the comex price creating a gap.
But now, it interesting to see that if the price can maintain the gain ?. Gap shown in ellipse. Bollinger band also made a big gap size. That suggest us a range for silver price movement in future. Half of gap is filled by price. Lower end of this gap is placed at 39300 mark. Price is trading on the moving line average. when the price pulls back (higher as in this case of rate hike ), within the downtrend, if it stays below the middle band and then moves back to lower band it shows a lot of strength. In attached chart we can see that,' the price is trading on the middle band, if it break the red line down side, then it can reenter bearish trend again and move towards the lower end of bollinger band. Lower line of bollinger band is placed at 39300 around.
Now another aspect to think about is gap shown in ellipse. Lower end of this gap is placed at 40100 mark. If silver price break this mark downward, only then it entered in perfect bearish territory . Till then it can move here and there, trying to consolidate itself.
