Silver Technical Precious Metals (2010-01-28)

According to our yesterday's bearish scenario, silver succeeded in re-testing the initial support level of 16.35 that forced it to start a temporarily correctional action. This correction is to be limited below 16.85-16.90 zones, whereas the metal will be able to gather the momentum it needs to resume the bearish rally, depending on the negative harmonic structure(AB=CD). Technical target of the pattern resides at 15.70 zones.

The trading range for today is among the key support at 15.75 and key resistance now at 17.85.

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

Weekly ReportPrevious ReportSupport16.4516.3516.2516.1716.05Resistance16.6516.7216.7716.8516.96RecommendationBased on the charts and explanations above our opinion is, selling silver from 16.65 targeting 16.25 and stop loss above 17.05 might be appropriate.