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The silver futures contract traded on the Multi Commodity Exchange is sustaining above the psychological ₹38,000 per kg support level.
The contract dipped to a low ₹37,935 on Monday and has reversed immediately.
The inability to extend its decline on Monday is positive for the contract.
On the global front as well, spot silver ($17.22) is finding support at $17 and is holding well above this level.
As long as it trades above this level, a rise to $17.5 and $17.7 is possible in the coming week.
A rise in the global silver price can help the MCX-silver futures contract also to move higher.
The contract can rise to test its immediate resistance at ₹38,650. A break above this level can take it further higher to ₹39,000 in the coming days.
Short-term traders can go long in this contract. Stop-loss can be kept at ₹37,800 for the target of ₹38,900.
The contract has been facing strong resistance at ₹39,000 all through this month.
A decisive daily close above ₹38,800 now will be a bullish sign for the contract to breach this key hurdle going forward.
In such a scenario, a rise past ₹39,000 can take the contract to ₹40,000 levels.
The outlook for the MCX-silver futures contract will turn negative only if it declines below ₹38,000. Next target is ₹37,000.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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