Silver futures is range-bound between its support at ₹36,000 and resistance at ₹37,300 per kg. This sideways consolidation movement could continue for few more sessions since the volumes are expected to remain low as the market enters into the year-end holiday season. A breakout on either side will decide the next trend for the contract.

On the daily chart, the immediate outlook is not clear. On the weekly chart, the outlook looks bearish and the contract can fall to ₹35,000 in the coming days. The intra-day charts are also giving out negative signals. Significant resistance is at ₹36,500. As long as the contract trades below this level, there is a strong likelihood for it to fall below ₹36,000. Subsequent targets are ₹35,500 and ₹35,000.

On the global front, the spot silver ($15.7 per ounce) prices have reversed lower on Monday from their resistance at $16.25. Though silver has support at $15.5, the price action over the last few dayssuggest that a break below this level is likely. Such a fall, can take the spot silver price lower to $15.25 and $15 in the coming days. This could also drag the MCX silver futures.

Traders with high risk appetite and willing to play the market amid thin volumes can go short at current levels. Stop-loss can be placed at ₹36,650 for the target of ₹35,600.

The outlook for the MCX silver futures will turn bullish only on a strong break above ₹37,300. Such a break can then take the contract higher to ₹38,000.

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

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