Comments
After hovering in a narrow range for long, the silver futures contract traded on the MCX is signalling a bullish break out now.
The contract which was stuck below its 200-day moving average resistanceat ₹44,709/kg for more than two weeks has broken this resistance decisively on Monday. The 200-day moving average level could now act as a good resistance-turned support level.
As long as the contract trades above this level, there is no immediate downside threat for the contract.
Immediate resistance for the contract is at ₹45,063 – the 55-week moving average. A strong break above this resistance will confirm the bullish breakout. In such a scenario, the contract will have the potential to rise to ₹46,100 in the coming days. Short-term traders can go long at ₹45,100.
Stop-loss can be placed at ₹44,700. Partial profits can be booked at ₹45,600 and then rest of the position can be squared-off at ₹45,900.
Key short-term support for the contract is at ₹44,000. The outlook will turn bearish only if the contract records a strong close below ₹44,000. But at the moment, the price action on the charts suggests that this is unlikely.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.