Weekly Report 05/07 -09/ 07 / 2010
Facing 38.2% Fibonacci levels is the main reason for the current consolidation as seen on the provided daily chart, but the metal is still pressured negatively by SMA 50-colored in red, while the weekly chart-secondary image- shows how the candlestick formation of the previous 2 weeks was clearly bearish. Thereby, more negative actions could be seen during this week, particularly if it succeeded to breach the support levels of the trading range areas around 17.60 zones.
The trading range for this week is among the key support at 16.60 and key resistance now at 19.10.
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 ReportSupport17.7217.6017.4817.3517.18Resistance18.0018.1518.3018.4518.65RecommendationBased on the charts and explanations above our opinion is, selling silver around 18.00 targeting 17.10 and stop loss above 18.60 might be appropriate.