Weekly Report 10/05 -14/ 05 / 2010
The weekly hanging man candlestick pattern could indicate that, silver might form a truncated fifth wave for the IM-impulsive- rally that started at 8.50 zones. We see how Stochastic is showing clear negative sign, while AROON up-colored in green- start to move downwards. Therefore, potential corrective structure A-B-C could be underway and thus; we might witness potential downside correction during this week. Areas of 19.00 should remain intact to keep our outlook valid.
The trading range for this week is among the key support at 17.25 and key resistance now at 19.40.
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 ReportSupport18.2518.1518.0517.9017.80Resistance18.5018.6018.6718.7418.83RecommendationBased on the charts and explanations above our opinion is, selling silver from 18.45 targeting 17.75 and stop loss above 19.00 might be appropriate.