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  5. MCX Silver extends gains, Will it reclaim ₹96,500 resistance?; check today's trade setup

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MCX Silver extends gains, Will it reclaim ₹96,500 resistance?; check today's trade setup

Upstox
By Upstox News Desk

3 min read | Updated on February 05, 2025, 17:40 IST

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SUMMARY

Silver futures on MCX surged past the ₹93,600 resistance level, extending their bullish momentum for the third consecutive session. In the short term, traders should watch price action around the next resistance zone at ₹96,500. A decisive close above this level or a rejection from it will offer key directional insights.

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Commodity trade setup 5 Feb: Silver extends gains—Will it reclaim ₹96,500 resistance? | Image: Shutterstock

  • Gold 4 April Futures: ₹84,670/ 10 gram (▲1.0%)
  • Silver 5 March Futures: ₹95,920/ 1 kg (▲0.2%)
  • Crude Oil 19 Feb Futures: ₹6,292/ 100 BBL (▼0.1%)
Gold: The yellow metal traded higher on Wednesday, with gold April Futures trading 0.62% higher at $2,893 per ounce. Gold prices trade near record highs amid the trade war between the U.S. and China. President Doland Trump’s comment on the proposal of a U.S. takeover of the Gaza strip also fuelled demand for the safe-haven asset. In addition, weakness in the dollar after Trump postponed trade tariffs on Mexico and Canada also supported the gold prices.
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Silver: Silver traded lower, down 0.37% at $32.90 per ounce. Precious metal investors look forward to key economic data, including the ADP Non-farm employment of U.S. of January which will be announced later today.
Crude Oil: International crude oil futures traded lower today, with Brent Futures trading around $75.53, down 0.85%, while WTI Crude traded 0.86% lower around $72.08. Oil prices traded under pressure amid higher U.S. fuel stockpiles and concern surrounding the U.S.-China trade war. According to experts, the ongoing trade tensions between the U.S. and China may dampen oil demand, putting downward pressure on prices.

Technical structure

Gold: The yellow metal extended the bullish momentum for the sixth consecutive day and hit a fresh record high. The outlook of the gold remains positive as it is trading above the crucial support levels of 21-day and 50-day exponential moving averages (EMAs). However, it is important to note that the gold has jumped over 5% since it reclaimed the crucial resistance zone of 80,500 mark on 28 January. For short-term traders, the immediate support for the gold is around ₹83,300 zone.
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Silver: Silver also extended the bullish momentum for the third consecutive day and is currently facing resistance around the ₹96,500 zone. As highlighted in our trade setup blogs, the silver prices extended the bullish momentum after reclaiming the ₹93,600 zone on closing basis. Unless the silver slips below the ₹93,600 zone, the trend may remain bullish.
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Crude oil: The oil prices are consolidating within previous day’s range after a sharp and volatile moves on 3 and 4 February. Crude prices moved in both the directions and failed to capture the 21-day EMA on closing basis. For the upcoming sessions, traders can monitor the range of 6,600 and 6,100. Unless crude breaks this range on closing basis, the trend may remain sideways.
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The open interest data for the 17 February expiry of crude oil on MCX saw significant additions of call and put open interest at 6,300 strike, signalling range-bound movement around this level. Additionally, significant additions was also seen in 6,400 and 6,500 strikes, suggesting resistance for the crude around these levels.

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Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for the client's consumption, and such material should not be redistributed. We do not recommend any particular stock, securities, or strategies for trading. The securities quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely to show how to do analysis. Take your own decision before investing.

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Consistency beats timing.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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