Comments
Silver futures traded on the Multi Commodity Exchange (MCX) have risen sharply over the past week and moved towards ₹39,000 a kg, in line with our expectations.
The contract rallied over 3 per cent last week and is currently trading at ₹39,350.
The global spot silver ($17.7/ounce) surged 8 per cent also led to rise in price of MCX silver. Immediate support for the global spot silver is at $17.5.
As long as it trades above this support level, the current rally can extend further to $18.4 – the 200-day moving average resistance – in the coming days.
A further break above $18.4 can take the price higher to $19 in the short-term.
On the domestic front, the outlook for silver futures is bullish. Key supports are at ₹38,800 and ₹38,500. A rise to ₹40,000 and ₹40,350 is possible in the coming week.
The 200-day moving average at ₹40,350 is a key level to watch. A strong break above this hurdle can take the contract higher to ₹41,000.
Traders with a short-term perspective can go long in this contract at current levels.
Stop-loss can be placed at ₹38,650 for the target of ₹40,250. Intermediate dips to ₹39,000 and ₹38,800 can be used to accumulate more long positions.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.