The short-term outlook for silver futures traded on the Multi Commodity Exchange (MCX) has turned bullish. The contract which was threatening to fall to ₹34,500 a kg and ₹34,000 has witnessed a strong reversal in the past week. It has risen from the low of ₹35,356 on March 17 to ₹38,050.

Thanks to the sharp fall in the dollar which has helped the global spot silver price surge from $15.5 per ounce last week to about $17 now. It has resistance at $17.25 that is likely to be tested in the coming days. A break above $17.25 can take it to $17.8 thereafter. Having said this, domestic futures which move in tandem with the global price are also expected to move up further.

Immediate support for the contract is at ₹37,700. Key short-term support is at ₹37,300. A rise to ₹38,400 – the 61.8 per cent Fibonacci retracement resistance is possible now. A break above this hurdle can take the contract higher to the next targets of ₹38,700 and ₹39,000.

Short-term traders can go long. Stop-loss can be placed at ₹37,600 for the target of ₹38,650. Intermediate dips to ₹37,700 if seen can be considered to accumulate long position.

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

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