Weekly Report 04 -08 / 01 / 2010

Silver has finally breached the minor uptrend line-colored in green- obviously as seen on the provided daily chart. It ispresently moving freely below it while being negatively pressured via SMA 50. Thus, the path is cleared to move downwards particularly if it succeeded to close continuously below 16.80, since thatwill ease the expected bearishness towards 15.20 zones -38.2% Fibonacci level for the upside rally that started at 8.40 to the recorded peak of 19.40. The bearish effect of the bearish harmonic AB=CD pattern is still in favor but note that areas of 17.20 could be tested before activating our negative scenario.

The trading range for the week is among the key support at 14.65 and key resistance now at 19.40.

The general trend is to the upside as far as 12.45 remains intact with targets at 20.15.

Support16.8016.6516.5016.2515.90
Resistance17.2517.4717.6517.8518.15
RecommendationBased on the charts and explanations above our opinion is, selling silver from 17.20 targeting 15.25 and stop loss above 18.55 might be appropriate.