MCX silver near key support
Mumbai-India (Mar 31) The corrective fall in silver futures traded on the Multi Commodity Exchange (MCX) is nearing an important support level. The contract recorded a high of ₹39,090 on Thursday and has come off from there to the current level of ₹37,300.
The 21-week moving average support is at ₹37,125, which can halt this fall. An upward reversal from here will have the potential to take the contract higher to ₹38,000 and ₹38,500 levels once again.
Traders with a short-term perspective can go long with a stop-loss at ₹36,900 for the target of ₹38,000.
The bullish outlook will get negated if the contract breaks below ₹37,125. The ensuing targets on such a break will be ₹37,000 and ₹36,500.
On the global front, spot silver ($16.6 an ounce) also has a key support coming up at $16.25. The price is expected to reverse from here to $17 once again. A rise in the global spot silver price will aid in pushing domestic futures also higher which move in tandem with the global price. The bullish outlook will get negated if the spot price declines below $16.25. In such a scenario, it can fall to $16 or even $15.5 levels in the short term.