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  5. MCX silver reclaims ₹93,800, will it sustain the bullish momentum?; check today's trade setup

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MCX silver reclaims ₹93,800, will it sustain the bullish momentum?; check today's trade setup

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By Upstox News Desk

3 min read | Updated on February 03, 2025, 18:13 IST

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SUMMARY

Silver futures on MCX are currently trading above the crucial resistance zone of ₹93,600 after breaking out from the downward slopping trendline. For short-term clues, traders can monitor the price action around this zone. A close above this level or rejection will provide further clues.

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Commodity trade setup 3 Feb: MCX Silver reclaims ₹93,600, will is sustain the bullish momentum? | Image: Shutterstock

Market recap (as of 6:00 pm)

  • Gold 4 April Futures: ₹82,950/ 10 gram (▲ 0.78%)
  • Silver 5 March Futures: ₹93,880/ 1 kg (▲ 0.71%)
  • Crude Oil 19 Feb Futures: ₹6,491/ 1 BBL (▲ 2.2%)
Gold: The yellow metal traded lower in the US markets, with April futures slipping 0.22% to $2,828 per ounce. Prices retreated from record highs on Monday as the U.S. dollar strengthened following President Donald Trump's announcement of trade tariffs on China, Canada, and Mexico. The U.S. dollar index surged to a nearly one-month high of 109.75 after the news. A stronger dollar typically dampens demand for gold.
Silver: Silver also declined, falling 0.42% to $32.13 per ounce. Investors in precious metals await key economic data releases, including U.S. jobs openings and ADP non-farm employment figures from the previous month.
Crude Oil: Oil prices surged amid supply concerns, with Brent futures climbing 1.57% to $76.88 per barrel and WTI crude rising 2.48% to $74.33. The gains follow President Trump's tariff announcement, which includes a 25% levy on most goods from Mexico and Canada, a 10% tariff on energy imports from Canada, and a 10% tariff on Chinese imports, effective tomorrow.

Analysts warn that announced tariffs could escalate into a trade war, potentially slowing global growth and fueling inflation.

Technical structure

Gold: After a negative start, the Gold futures on MCX recouped all its morning losses and are currently trading above the high of previous two sessions. This indicates support based buying across for the yellow metal with immediate support around ₹80,500 zone. Meanwhile, on the weekly chart the gold closed at a record high level, extending the winning momentum for the fifth consecutive week.
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Silver: Silver staged a rebound from the crucial support zone of 21-day and 50-day exponential moving averages (EMAs) and is currently sustaining its gains after breaking out from the downward sloping trendline connecting the high point of October. For short-term clues, trades can monitor the price action around immediate resistance of ₹93,600 zone. A close above this zone will open the gates for further up move.
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Crude oil: Oil prices on MCX futures jumped above the 21 EMA and broke the five-day consolidation. However, the broader structure of the crude remains range-bound with immediate resistance around the ₹6,600 zone. Unless crude captures this zone on a closing basis, the trend may remain range-bound. On the flip side, if crude fails to sustain its gains above 21 EMA, then it may extend the weakness till 6,000.
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The open interest data for the 17 February expiry saw significant put addition at 6,300 strike, suggesting support for the index around this zone. On the flip side, the call base was seen at 6,500 and 7,000 strikes, marking them as immediate resistance zones.

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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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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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