Weekly Report 08 -12 / 01 / 2010
Silver collapsed downwards, negatively influenced by the bearish harmonic AB=CD pattern as seen on the provided daily chart. Now, the negative crossover appearing on SMA 50 and SMA 100 might bring additional bearishness, targeting 13.90, followed by 13.35 zones. The weekly candlestick formation on the secondary image supports the potential bearish anticipation.
The trading range for this week is among the key support at 13.35 and key resistance now at 16.60.
The general trend is to the upside as far as 12.45 remains intact with targets at 20.15.
Previous ReportSupport14.8014.6014.4514.3513.90Resistance15.3015.5515.6515.8516.00RecommendationBased on the charts and explanations above our opinion is, selling silver from 15.35 targeting 1390 and stop loss above 16.25 might be appropriate.