Silver futures traded on the Multi Commodity Exchange (MCX) are range-bound between ₹37,000 and ₹38,500 per kg over the last two weeks. The sharp fall in the global silver spot ($16.85) on Tuesday has resulted in a huge gap-down opening in the MCX silver futures which had opened in the evening session after being closed for the morning session due to domestic public holiday. Currently, the contract is trading near ₹37,415.

A dip to test the range support at ₹37,000 appears likely now. Traders can stay out of the market at the moment and wait for a breakout on either side of this range to get a clear trading signal.

A break below ₹37,000 will be bearish. It can then take the contract lower to ₹36,000. On the other hand, a reversal from ₹37,000 will keep the sideways range intact. It will result in a short-term rally towards ₹38,000 and ₹38,500. The outlook for the contract will turn bullish only on a strong break above ₹38,500. The ensuing targets on such a break will be ₹39,000 or even ₹40,000.

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

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