The silver futures contract traded on the Multi Commodity Exchange (MCX) fell to a low of ₹33,491/kg on Friday and has reversed higher from there. The broader trend remains down for the contract.

So any further rise in the price can see fresh selling interest coming into the market. Immediate resistance is at ₹35,000 and the next short-term resistance is at ₹36,000. An immediate break and rise above ₹36,000 looks less likely.

Traders with a short-term perspective can go short in this contract. Stop-loss can be placed at ₹36,100 for the target of ₹33,000. Intermediate rallies to ₹36,000 if seen can be used as an opportunity to accumulate more short positions.

Immediate support for the contract is at ₹33,400. Declines below this level can drag the contract to ₹32,650. This level of ₹32,650 is a strong support level for the MCX-silver futures contract. The possibility of a sharp price reversal looks high from this level.

On the global front, the spot silver ($15.6/ounce) has reversed higher from Friday’s low of $15. The price action on the charts suggests that the commodity lacks upside momentum for the price rise to extend further. Immediate resistance is at $16 which can limit the upside.

The outlook is bearish and the silver can drop to test $15 once again. A break below this level can take it further lower to $14 there after. A fall in global silver price could push the MCX-silver price also lower along with it.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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