The MCX-silver futures contract broke its three-week sideways consolidation move in the past week. The contract surged and broke above the resistance at ₹42,650 per kg . Though the contract has come off from its intra-week high of ₹44,200, the near-term view remains positive. Supports are at ₹42,800 and ₹42,500. A rise to test the 21-week moving average resistance at ₹44,850 or even ₹45,000 is possible in the near term. A decisive break above ₹45,000 will boost the bullish momentum. Such a break can take the contract higher to ₹46,000 or even ₹46,500 thereafter. But an inability to break above ₹45,000 may trigger a corrective fall to ₹44,000 or ₹43,500. The 200-day moving average at ₹41,680 is a key support. The outlook will turn negative only if the contract declines decisively below this support. Short-term traders can go long on dips near ₹42,850. Stop-loss can be placed at ₹41,600 for the target of ₹44,800. Revise the stop-loss higher to ₹42,500 as soon as the contract moves up to ₹43,850.
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.