The silver futures contract traded on the Multi Commodity Exchange (MCX) slumped 2.6 per cent on Monday to ₹33,451 per kg, after having closed on a positive note in the past week. But, it has bounced up on Tuesday gaining over ₹200 or 0.6 per cent and currently trades at ₹33,660. This bounce appears to be a corrective move. Both the medium and short-term trends are down for the contract.
It trades well below its 21- and 50-day moving averages. An emphatic fall below the immediate support level of ₹33,200 can drag the contract down to ₹33,000 and then to ₹32,600 in the short term. Traders with a short-term view can go short below ₹33,200 with a stop-loss at ₹33,500. On the other hand, the contract has a key resistance at ₹34,500 and ₹35,000. Strong rally above these resistance levels is needed to alter the short-term downtrend and take the contract higher to ₹36,000.
On the global front, the spot silver price fell 3 per cent on Monday, breaching its 21-day moving average. It currently trades at $13.9 per ounce. An immediate support is at $13.7. Conclusive fall below this support will strengthen the downtrend and drag the silver price down to $13.5 and then to $13 in the medium term. Key resistances are placed in the $14.4-$14.5 range and at $14.8.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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.