GURUMURTHY K | Updated on January 13, 2018 Published on March 05, 2017
The silver futures contract on the MCX surged 5.6 per cent lastmonth to record a high of ?44,151. But the contract slumped over 3 per cent in the last two trading days in the past week wiping out most of the gains made earlier. Immediate resistance is at around ?43,000. Inability to breach above this hurdle may keep the contract under pressure. In such a scenario, a fall to ?42,000 or ?41,900 is possible in the near term. A reversal from the ?42,000-?41,900 support zone can keep the silver futures range-bound between ?42,000 and ?43,500 for some time. A breakout on either side of ?42,000 or ?43,500 will then decide the next trend for the contract. The bias is bullish on the charts. As such, the contract is likely to sustain above ?42,000 and break above ?43,500 eventually. Such a break can take the contract higher to ?44,500 or ?45,000 thereafter. Traders with a medium-term perspective can buy on dips near ?42,000. Stop-loss can be placed at ?41,250 for the target of ?43,500. Revise the stop-loss higher to ?41,700 as soon as the contract moves up to ?42,850.
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Published on March 05, 2017
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