Weekly Report 02/08 -06/ 08 / 2010
The metal inclined mildly once more, supported by the neckline of the previous proposed bearish classical pattern as seen on the provided daily chart. The negative technical facts that we discussed during the previous week continued appearing on the chart, while the descending channel still dominates the movements. From here, we believe that the metal is still gathering the momentum it needs to breach this aforesaid neckline, activating the potential bearishness during this week. Areas of 18.90 shouldn't be breached to keep this outlook valid.
The trading range for this week is among the key support at 16.80 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 ReportSupport18.0517.9017.8017.6517.55Resistance18.2518.3018.4518.5518.74RecommendationBased on the charts and explanations above our opinion is, selling silver with a breakout below 17.90 targeting 16.85 and stop loss above 18.60 might be appropriate.