Silver Technical Precious Metals (2012-01-27)

January 27, 2012 3:07 AM EST

Morning Report

Silver is stable around 33.40 -mentioned in previous reports- yet below the top C of the harmonic Bat Pattern shown above. Pont C is the defining point to either extend the upside wave or reversing to the downside and that depends on a successful breach or failure to stabilize above those areas. Momentum indicators over daily basis are in clear overbought areas and that minimizes the chances for the breach, yet at the same time if the upside move continued and stability was seen above point C at 31.75 silver might ignore the overbought signal and resume the upside move. Therefore, we remain neutral for today.

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>The trading range for today is among the key support at 30.30 and key resistance now at 35.10.

The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact with weekly closing.

*The chart above is based on NY time*

Previous Report

Weekly Report


Support	32.75	32.40	32.10	31.60	31.30

Resistance	33.40	33.75	34.25	34.60	35.10

Recommendation	Based on the charts and explanations above we recommend observing trading today awaiting more confirmations