Silver Technical Precious Metals (2010-01-08)

Silver succeeded in forming an obvious bearish candlestick formation that took it below 161.8% Fibonacci level of XA leg for the negative harmonic formation. Currently, additional downside actions are to be seen over intraday basis, supported by the classical double top formation appearing obviously on the provided chart. A break of the neckline around 18.00 zones is to accelerate this highly anticipated bearishness.

The trading range for today is among the key support at 17.05 and key resistance now at 19.45.

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

Weekly ReportSupport17.9517.8517.7217.6517.60Resistance18.1018.1518.2018.3318.45RecommendationBased on the charts and explanations above our opinion is, selling silver from 18.05 targeting 17.55 and stop loss above 18.50 might be appropriate.