Short-term outlook is bullish for MCX-Silver

Gurumurthy K BL Research Bureau | Updated on June 10, 2014 Published on June 10, 2014

The silver futures contract traded on the Multi Commodity Exchange has moved above the psychological level of ₹40,000/kg. A reversal in the global spot silver price after last week’s European Central Bank meeting coupled with a weak rupee has taken the MCX-silver price higher. The short-term outlook can be bullish as long as the contract trades above ₹40,000.

On the global front, the spot silver price has moved above the crucial $19/ounce level. While it remains above $19, the probability of testing $19.5 is higher in the coming days.

On the domestic front, the white metal reversed higher taking base from a trend line support around ₹39,465 last week.Also the psychological level at ₹40,000 has been providing immediate support for the contract over the last couple of days. Intermediate resistance is at ₹40,700. A break above this level can take the contract higher to ₹41,350 and then to ₹41,500 in the coming week. Traders with a short-term perspective can go long now on the contract with a stop-loss at ₹39,950 for the target of ₹41,350.

Published on June 10, 2014
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