Silver closed higher with gold on a day when the dollar softened, which tends to support metals in general. However, silver often was higher even when gold wasn't. Potentially increasing industrial demand, particularly from Asia, appears to be offering extra support. Silver has made strong gains this week to current 18.43. The early December weekly high of 18.50 has held so far, but a break opens a run to 2009 high of 19.46. The outperformance of Silver this week has forced the Gold Silver ratio lower from 64.92 to 61.58. Current level 61.60 was our November low which should provide supportive. Below these levels opens up a move down to 59.79. Now support for the silver is seen at 28184 and below could see a test of 28129. Resistance is now likely to be seen at 28271, a move above could see prices testing 28303.

Trading Ideas:

Silver trading range is 27800-28700.

Increasing industrial demand from Asia appears to be offering extra support

Silver is having resistance at 28420 and support at 28110 level

Silver important will be the 28000 below this again silver looks till 27800-27650.

BUY SILVER MAR @ 28200-28250 SL 28090 TGT 28360-28422-28500-28574.MCX