Weekly Report 28/06 -02/ 07 / 2010
On the daily basis, it seems that the market is presently forming the CD leg of a harmonic AB=CD structure after being supported around the pivotal support levels of 18.15 as seen on the provided chart. Areas of 19.45 should be breached to confirm the pattern. Until this breakout occurs our outlook will be neutral and if it happened, then the path will be cleared for visiting 19.80 followed by 20.20 zones.
The trading range for this week is among the key support at 18.15 and key resistance now at 20.20.
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.
Support19.0018.8018.6518.5518.40Resistance19.2519.3519.4519.6019.80RecommendationBased on the charts and explanations above our opinion is, buying silver with a breakout above 19.45 targeting 20.20 and stop loss below 18.85 might be appropriate.