Weekly Report 26/07 -30/ 07 / 2010
Silver is fluctuating between 23.6% and 38.2% Fibonacci levels of the upside rally from 14.60 to 19.80 as seen on the provided daily chart but potential bearish classical pattern might be under preparation. A breakout below 17.80-17.60 zones is needed to confirm this proposed structure. The technical indicators are giving off neutral signs. Thereby, the outlook will be neutral during this week until the metal attacks 17.80 zones.
Technical Note: SMA 50-colored in red- may force silver to show possible bearishness over intraday basis.
The trading range for this week is among the key support at 16.80 and key resistance now at 19.45.
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 ReportSupport18.0017.8017.6017.5017.40Resistance18.2518.3018.4518.5518.65RecommendationBased on the charts and explanations above our opinion is, selling silver with a breakout below 17.80 targeting 16.85 and stop loss above 18.55 might be appropriate.