Silver futures traded on the Multi Commodity Exchange (MCX) are tuck in a narrow range and have been hovering above ₹36,000 a kg for about a week now. The immediate outlook is not clear.

However, the price action on the chart leaves the bias bearish and silver futures can fall in the coming days.

Key support is at ₹35,850. A strong break below this level would increase the pressure and drag the contract lower to the next targets of ₹35,400 and ₹35,150.

Short-term traders can stay on the sidelines at the moment and wait for the support at ₹35,850 to be broken. In such a scenario, short positions can be initiated at ₹35,800. Stop-loss can be kept at ₹36,100 for the target of ₹35,400. If the contract manages to hold above ₹35,850 and reverses higher from there then the contract can rise to ₹36,500 or even ₹37,000.

On the global front, the spot silver ($16.31/ounce) is range bound between $16 and $16.6 and is currently poised at the mid-point of this range.

There is a 50-50 chance of movement in either direction from current levels. A breakout on either side of $16-16.6 will decide the next trend for spot silver prices.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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