Weekly Report 24/05 -28/ 05 / 2010
Silver also closed very negatively on the weekly chart and thus; the present upside movements should be seen as a normal correction, which could take it towards 38.2% Fibonacci levels for the last declines from 19.80 to 17.38 zones in order to relieve Stochastic, where a new descending wave could start during this week, based on our captured bearish harmonic three drives pattern. The metal retargets 17.40 zones and might extend further towards 16.90.
The trading range for this week is among the key support at 16.60 and key resistance now at 19.00.
The general trend over the short term basis is to the upside, targeting $ 21.50 per ounce as far as areas of 16.20 remain intact.
Previous ReportSupport17.8017.6517.5517.4017.25Resistance18.0518.2518.3518.5518.74RecommendationBased on the charts and explanations above our opinion is, selling silver from 18.25 targeting 17.40 and stop loss above 18.90 might be appropriate.