Silver MCX: Bullish Momentum Builds Above Key Support LevelsTechnical Outlook for MCX Silver:
MCX Silver has shown strong bullish momentum, bouncing off the 200-day moving average (MA) near the ₹79,601 level, signalling a potential trend reversal. The price action indicates that silver is consolidating above the 50% Fibonacci retracement level of ₹79,601, which aligns with the 200-day MA, adding further strength to this support zone.
The recent recovery from this support level has pushed prices above the ₹81,000 mark, indicating the potential for further upside movement. The next immediate resistance is seen at the 61.8% Fibonacci retracement level of ₹83,300, a critical level to watch for a potential breakout. A sustained move above this level could open the door for a rally toward the ₹88,864 zone, corresponding to the 78.6% Fibonacci retracement level.
On the momentum front, indicators are turning positive, with the RSI rebounding from oversold levels and the MACD showing signs of a potential bullish crossover. Additionally, the low volatility environment suggests that a significant move could be on the horizon, potentially favouring the bulls if key resistance levels are breached.
**Action for Traders:**
**Buy** at the current rate, with an **add above ₹83,300** (61.8% Fibonacci retracement level). Set a **stop loss at ₹79,600** (50% Fibonacci level). Target **₹88,600**, which aligns with the 78.6% Fibonacci retracement level. The trade is further supported by ongoing geopolitical tensions centred around Middleeast, which could boost precious metals. Additionally, the gold-silver ratio is likely to drop from the 89/90 level, suggesting that silver will outperform in the near term.
