Weekly Report 01 -05 / 02 / 2010

Silver is moving steadily below the broken uptrend line-colored in green- as seen on the provided daily chart. We see how SMA 50 and SMA 100 have overlapped negatively, reviving that the bearishness obtained from the negative harmonic AB=CD pattern is to continue over short term basis but RSI 14 has reached oversold areas and might cause some kind of fluctuated movements before resuming the downside rally.

The trading range for this week is among the key support at 14.65 and key resistance now at 18.55.

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

Previous Report

Support15.9515.8015.7015.5515.40
Resistance16.3016.4016.5516.6516.83
RecommendationBased on the charts and explanations above our opinion is, selling silver from 16.30 targeting 15.15 and stop loss above 17.05 might be appropriate.