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The short-term outlook for the silver futures contract traded on the Multi Commodity Exchange (MCX) has turned bullish. The contract surged over 3 per cent on Mondayand is currently trading at ₹37,100/kg levels. This sudden rise has happened after three days of consolidation around the psychological ₹36,000 support level. Immediate supports are at ₹36,900 and ₹36,600. There is no danger of any immediate reversal as long as the contract trades above ₹36,600. Having said this, a rise to ₹38,000 is possible in the coming days. Resistance is at ₹37,350, a strong break above this will pave way for further rally.
Short-term traders can go long. Stop-loss can be kept at ₹36,500 for the target of ₹37,900. However, the outlook for the contract will turn bearish only if it records a strong close below ₹36,000. In such a scenario, the contract can fall to ₹35,000.
On the global front, the spot silver ($16.4/oz) has reversed sharply higher from the low of $15.6. Supports are at $16.3 and $16. A rise to $16.75 and then to $17.25 looks likely in the short-term. The rise in spot silver price could aid in pushing the MCX silver futures contract also higher in the short-term as the domestic price moves in tandem with the global price.
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