Weekly Report 22-26 / 02 / 2010

Classically speaking, silver is facing the resistance line of the ascending channel as seen on the provided four-hour chart. Having a look at the areas between 16.50 and 16.65, we will observe that the bearish harmonic formation is seeking for placing a potential reversal point while a negative divergence has been formed already. This couple of technical facts claims that, possible negative movements could be seen during this week.

The trading range for this week is among the key support at 14.60 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

Support16.4016.3016.2516.0015.85
Resistance16.5516.6516.8516.9317.05
RecommendationBased on the charts and explanations above our opinion is, selling silver with a breakout below 16.30 targeting 15.20 and stop loss above 17.05 might be appropriate.