Silver Price Today: Commodity Strategies: How Gold And Silver Can Trade Today
Gold June futures continued to trade in the same range of Rs 48150-48900 after a volatile session last week. The lower band of the range was supported by his 8-day EMA (48150). The next support for the price of gold exists around Rs 47,900. Likewise, the upper Bollinger Band acts as a key resistance for the price. The price should move beyond Rs 48900-48950 (61.8% Fibonacci retracement of the previous fall), to resume its uptrend towards Rs 49250. The strength index hovers around 62, suggesting a firmness of the trend. For the day, the price should move in the range of Rs 48150-48900 with a lateral bias. Only a sustained move above Rs 48,950 would bring additional buying interest and push prices further towards Rs 49,250.
Buy MCX Gold June at Rs 48,250 with a target price of Rs 48,900 and a stop loss at Rs 47,900.
MCX Silver May futures saw a sharp drop to the 20 day EMA at Rs 70,600 as it failed to keep immediate support near Rs 71,800 (8 day EMA). Key resistance for July futures exists around Rs 73,300, followed by Rs 74,450 (previous high). As we have noticed, the silver uptrend channel is intact as well as an 8 and 20 day EMA bullish cross that could limit the price decline. However, failure to maintain above Rs 70,600 would change the trend towards neutrality. On the momentum front, RSI hovers near 53, supporting lateral bias. Therefore, we would expect Silver to trade in the range of Rs 70,500-73300 with a sideways bias.
The trading range for MCX Silver May futures contracts is Rs 70,600-73300.
(Ravindra Rao, CMT, EPAT is VP-Head Commodity Research at Kotak Securities)