Weekly Report 18 -22 / 01 / 2010
The mixture between Elliott waves and harmonic studies shows that, silver is currently forming the [B] wave of a short term Elliott cycle inside a recently established bearish channel, where it will face its upper line around 18.65 zones. From here, we expect a bearish wave to complete the suggested count, while the negative effect of the bearish harmonic structure is still in favor.
The trading range for this week is among the key support at 16.25 and key resistance now at 20.15.
The general trend is to the upside as far as 12.45 remains intact with targets at 20.15.
Previous day ReportSupport18.3518.2518.1818.0517.90Resistance18.6518.7018.8518.9518.15RecommendationBased on the charts and explanations above our opinion is, selling silver from 18.65 targeting 17.75 and stop loss above 19.20 might be appropriate.