Silver Technical Precious Metals (2010-07-12)

Silver inclined sharply on past Friday, forming a log white candlestick pattern as seen on the provided daily chart. This incline proved the solidity of the support zones of our caught range trading areas and also the strength of 38.2% Fibonacci level of upside rally from 14.60 to 19.80 zones. Thus; possible bullishness could be seen during this week, aiming to retest the upper line of the declining channel, supported by the positive sings appearing on RSI 14 and AROON indicator. Note that, areas between 17.60 and 17.50 should hold to keep this proposed scenario valid.

The trading range for this week is among the key support at 17.30 and key resistance now at 18.90.

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 ReportSupport18.0017.8017.7217.6017.50Resistance18.1518.2518.4018.5518.65RecommendationBased on the charts and explanations above our opinion is, buying silver around 17.95 targeting 18.60 and stop loss below 17.50 might be appropriate.