Silver Technical Precious Metals (2010-08-09)

Silver is trading within the same trading range without showing big moves as seen on the provided daily chart. The previous suggested reversal classical pattern is still in favor. Thus,we predicate potential bearish actions during this week, supported by the bearish harmonic formation, which appears obviously on Stochastic. Note that, a break of the pivotal support level around 18.25 is needed to activate our scenario.

The trading range for this week is among the key support at 17.40 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 ReportSupport18.2518.0517.9517.8017.60Resistance18.6018.7418.8518.9519.10RecommendationBased on the charts and explanations above our opinion is, selling silver with a breakout below 18.25 targeting 17.40 and stop loss above 18.95 might be appropriate.