Silver outperformed gold. There continues to be a rosy picture painted for overseas demand for industrial metals. This is the case even though China has tightened reserve requirements for banks. Thus, silver is drawing extra strength due to its role as an industrial metal in addition to its other role as a precious metal. Silver opened at 28030 on MCX and was directionless as the session began. A strengthening USD along with weaker oil caused the metal to tumble. It dropped to an intraday low of 27865 before good buying entered the market. It spent the remainder of the day making back lost ground as investors bought up the metal. Silver peaked at 28349 and traded sideways as the day unwound, finally settling at 28298.Now support for the silver is seen at 27992 and below could see a test of 27687. Resistance is now likely to be seen at 28476, a move above could see prices testing 28655.

Trading Ideas:

Silver trading range is 27800-28600.

Silver rose yesterday outperforming gold getting support from base metal prices

Silver is having support at 28140 level on Mcx and 18.40$ in spot.

Spread between Silver MAR & MAY contracts yesterday ended at 168

BUY SILVER MAR ABV 28320 SL 28200 TGT 28360-28434-26490.MCX