Silver Technical Precious Metals (2010-06-01)

Silver is trading around 50% Fibonacci level for the last declines from 19.80 to 17.40, while Stochastic overlapped negatively suggesting that the correction might have been ended. The secondary image of the four-hour interval shows how its Stochastic also crossed over negatively while the candlestick structure is bearish. To conclude, possible bearishness could be seen over intraday basis, supported by the bearish harmonic three drives pattern.

The trading range for today is among the key support at 17.90 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.

Weekly Report Previous ReportSupport18.4018.3518.2518.1518.05Resistance18.5518.6318.7418.8018.96RecommendationBased on the charts and explanations above our opinion is, selling silver from 18.55 targeting 18.00 and stop loss above 19.00 might be appropriate.