Silver Technical Precious Metals (2010-02-23)

Silver has declined aggressively, reaching the initial support areas of 16.10 as seen on the provided four-hour chart. From there, the correction started in order to relieve the indicators. These correctional movements could reach 16.40 zones before resuming the potential bearish rally over intraday basis as we believe that the bearish harmonic effect is to continue, retargeting 15.70 zones.

The trading range for today is among the key support at 15.55 and key resistance now at 17.30.

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

Weekly Report Previous ReportSupport16.2016.1516.0015.8515.70Resistance16.3016.3516.4516.5516.65RecommendationBased on the charts and explanations above our opinion is, selling silver from 16.40 targeting 15.75 and stop loss above 16.95 might be appropriate.