Weekly Report 07/05 -11/ 06 / 2010
The bearish harmonic effect of the three drives pattern has been able to take the metal in a southern trip, breaching the uptrend line that carried the movements from 14.60 to the peak of 19.80. Now, we see how the secondary descending channel controlled the trend ideally, while the metal stabilized below SMA 50. Therefore, more bearishness might be underway during this week but a re-testing action for the broken uptrend might occur first. Carefully note that, a break of the pivotal support levels of 17.05 could bring panic sell-off actions.
The trading range for this week is among the key support at 16.20 and key resistance now at 18.40.
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 ReportSupport17.3517.2517.0516.9016.80Resistance17.6017.7017.7517.8518.05RecommendationBased on the charts and explanations above our opinion is, selling silver from 17.60 targeting 16.90 and stop loss above 18.05 might be appropriate.