Weekly Report 22-26 / 03 / 2010
Classically speaking, silver succeeded in forming a double top formation as seen on our provided daily chart but we need a breakout below the proposed neckline of the pattern at 16.80 to get a full confirmation. This awaited breakout is able to activate a breakout below the uptrend line which carried the movements from 14.60 zones to 17.60 areas. Hence, potential bearishness could be seen during this week, supported by the obvious bearish sign appearing on AROON.
The trading range for this week is among the key support at 14.60 and key resistance now at 18.40.
The general trend over the short term basis is to the downside, targeting $ 13.60 per ounce as far as areas of 19.40 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver with a breakout below 16.80 targeting 15.90 and stop loss above 17.60 might be appropriate.|