After a big dip in prices, silver regained its importance and currently trading around 55667. India is the leading consumer of silver thereby hitting a record of 8200 tonnes. Moreover, demand in India is boosting up which is ultimately providing support to its prices.
Recently, the FED meeting took place where the central bank made a hike in interest rates. Now, after the FOMC meet silver bounced back and showed an upside rally thereby breaking the mark of 59000.
Furthermore, an upside rally in silver could not last long. Precisely, silver was unable to perform and could not beat the psychological level of 60000.
If we converse about today, then silver made a low of 55670 thereby hitting a high of 56205. For two years, silver was in a consolidation mode but for the last 5 months it is continuously plunging down.
Currently, silver is spinning in its support zone between 55125—54000. Moreover, if we discuss Comex then the support zone may travel between $18.45—$18.00.
If it breaches the level of $18 in Comex and INR 54000 in MCX on a weekly closing basis, then we may witness a sharp downside move between $16.20—$15.50. In short, we may witness a downside target between $16.20—$15.50.
Moving towards the MCX division, INR is playing its role which may hitch down the silver futures thereby hitting the targets of 50000—48000.
A good positional buying opportunity will occur only if it closes above 60000. Therefore, we may not witness any sort of bullish trend in silver futures. Traders are advised to be cautious at upper levels.
Low-risk traders may buy silver between 55125—54800 thereby maintaining a stop loss of below 54000 on a closing basis. Furthermore, we may witness upside targets between 56500—57200.
Traders are advised to wait for some time for carrying a positional trade.
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