Silver Outlook
Silver prices have risen from $26 to over $28, influenced by geopolitical tensions and inflation concerns. The market is also reacting to U.S. jobs data which suggests possible Federal Reserve rate cuts. An upcoming inflation report could further affect prices. Technically, silver has strong support at $27 and $27.50, and if these levels hold, prices could exceed $30 later this year.
Tech View
On the daily chart, silver is showing a bullish trend with a pattern of higher highs and higher lows. Similarly, the Relative Strength Index (RSI) is mirroring this pattern, further indicating bullish sentiment. Key resistance levels for silver are around 85,800 and 86,200, while support levels are at approximately 84,800 and 84,370.
Intraday Trading Strategy
– Buy MCX JULY SILVER futures at Rs 85,200 with a stop loss of Rs 84,800 and a price target of Rs 86,200.
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Natural Gas Outlook
US natural gas futures increased due to higher demand for liquefied natural gas (LNG) and reduced production levels. The June delivery futures rose by 12.9 cents, or 5.7 per cent, to $2.381 per million British thermal units (mmbtu), reaching the highest price since January 29. This price increase is attributed to strong demand and lower-than-expected production rates.
Tech View
On the daily timeframe, natural gas is displaying a bullish trend, characterised by forming higher highs and higher lows. Additionally, the 21-day EMA has crossed above the 50-day EMA, signalling a positive crossover and further reinforcing bullish sentiment. Resistance levels for natural gas are currently seen around Rs 205 and Rs 220, with support levels at approximately Rs 192 and Rs 185.
Intraday Trading Strategy
– Buy MCX MAY NATURAL GAS futures at Rs 197 with a stop loss of Rs 192 and a price target of Rs 205
(Neha Qureshi is a senior manager, technical research analyst of commodities & currency at Anand Rathi. Views expressed are her own)