Precious Metals FUTURES Update

Silver rejected the lower end of the daily range yesterday and made a convincing move towards the upper end of the daily range.

We see this as strength in the markets as the net longs in the market continue to build.

The market illustrated, once again, the inherent demand for physical is very much supportive in the short and longer term, as any setbacks towards the lower end of the distribution is met by strong buying.

We favor the long side today against any further setback in the daily upward trend.

Buy March Silver at 13.210. Targeting 13.500 & 13.685. Stops below 13.120. Although we could see some intra-day downside, major support at 13.210 (5 day lows & 50 day MA) will be hard to break. Alternatively, shorter term long trades can be entered at 13.340.