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The silver futures contract traded on the Multi Commodity Exchange (MCX) has been range-bound between ₹37,000 and ₹38,000 a kg.
The contract could not sustain the break above ₹38,000 witnessed on Monday and fell back immediately after recording a high of ₹38,588.
It is currently trading near ₹37,700.
Traders can stay out of the market at the moment, as the immediate outlook is unclear. Wait for a breakout on either side of ₹37,000-38,000 to get a clear signal on the next direction of move. A strong break and close above ₹38,000 will be bullish.
The contract can then target ₹39,000. On the other hand, the outlook will turn negative on a strong break below ₹37,000.
The ensuing target on such a break will be ₹36,000.
On the global front, the spot silver price ($16.88/ounce) is stuck in a narrow range of $16.5 and $17.5 for more than two weeks.
A break from this range will decide the next leg of move .
The presence of the 21-week moving average at $16.6 shows a positive bias for a bullish breakout above $17.5. In that case , price can rise to $18.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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