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Silver futures traded on the Multi Commodity Exchange (MCX) have risen towards ₹38,000/kg in the past week as expected. It currently hovers at around ₹38,180, just below the 200-day moving average resistance level at ₹38,180.
There is a strong likelihood of the contract breaking above the 200-day moving average resistance in the coming days. Such a break will increase the bullish momentum and take the contract higher to ₹39,000 and ₹39,150 there after.
Key support is at ₹37,500 levels.
Traders with a short-term perspective can go long. Stop-loss can be placed at ₹37,400 for the target of ₹38,950. Intermediate dips to ₹37,500 can be considered to accumulate long positions. The short-term outlook will turn negative if the contract declines below ₹37,500. The next targets will be ₹37,000 and ₹36,850.
On the global front, the spot silver ($16.43 per ounce) is getting support at $16.15. There is no immediate danger in the short-term as long as the spot prices trades above this support level. A strong break above the immediate resistance at $16.75 will take the price higher to $17 and $17.45. Such a rise can push the domestic MCX futures higher as the domestic prices move in tandem with the global spot price.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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