Weekly Report 29/03 -02 / 04 / 2010

We cannot say that the classical double top formation appearing on the daily charts for silver has failed, since the metal is still moving below the broken uptrend line, which carried the movements from 14.60 to 17.60. Therefore, potential bearishness could be seen during this week. The secondary image shows that a bearish harmonic construction has been formed on Stochastic indicator on the four-hour, adding further negative pressure.

The trading range for this week is among the key support at 15.25 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.

Previous Report

Support16.8016.7216.6516.4816.35
Resistance17.1817.2517.4417.5517.65
RecommendationBased 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.