Comments
The silver futures contract traded on the Multi-Commodity Exchange (MCX) is gaining momentum after consolidating sideways between ₹35,350 and ₹36,600 a kg for more than a week. The contract is currently trading near ₹36,500. A rise in the global spot silver ($16.7 per ounce) price coupled with a weak rupee is supporting the price rise.
The global spot silver price has support at $16.5. It can rise to $17.1 in the near term. The rise in the global price could aid the MCX-silver futures contract to move up further in the coming days.
The immediate support is at ₹36,350 and the key short-term support is at ₹36,000. The outlook will remain bullish as long as the contract trades above these support levels. As such, a rally to test ₹37,100, the immediate resistance, is more likely in the coming days. A break above this level can see the MCX-silver contract extending its rally to ₹37,450.
Traders with a high-risk appetite can go long at current levels. Stop-loss can be placed at ₹36,325 for the target of ₹37,350.
The level of ₹37,450 is a key trend line resistance for the MCX-silver futures contract. A reversal from here will have the potential to drag the contract lower to ₹36,000 once again. So, traders will need to be cautious and long positions can be squared-off as the contract approaches this level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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.