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After being range-bound in the first half of the month, MCX-Silver plummeted over 7 per cent in the last two weeks. Immediate support is at ₹39,000. A break below it can take the contract lower to ₹38,300, which is a key short-term support level. A test of this support at ₹38,300 looks likely in the near term. The downside pressure will ease if the contract manages to reverse higher from there. Such a reversal may have the potential to take the MCX-Silver futures contract higher to ₹40,000 or ₹41,000. A strong break above ₹41,000 will bring back the bullish momentum and open the doors for a fresh rally to revisit ₹43,000 levels. On the other hand, if the contract declines below ₹38,300 decisively, it can fall to ₹36,500, a key long-term trendline support which may halt the downtrend. An upward reversal from here will see a relief rally towards ₹40,000 levels. But if the contract fails to reverse higher from ₹36,500 and breaks below it decisively, the selling pressure may intensify. The danger of the contract tumbling to ₹35,000 or even lower may increase.
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