Silver Technical Precious Metals (2010-02-09)

It seems that, the metal is currently forming the CD leg for the harmonic AB=CD pattern as seen on the provided four-hour chart. We believe that silver might retest the broken cluster support areas turned into resistance at 15.35-15.40, where a new descending wave might occur, targeting 14.50 zones, where the harmonic structure could be completed. Henceforth, potential bearish movements might be witnessed over intraday basis.

The trading range for today is among the key support at 14.15 and key resistance now at 16.25.

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

Weekly ReportPrevious Report Support15.0514.9014.8514.8014.70Resistance15.2515.3015.3515.4415.52RecommendationBased on the charts and explanations above our opinion is, selling silver from 15.25 targeting 14.60 and stop loss above 15.80 might be appropriate.