Weekly Report 16/08 -20/ 08 / 2010
As we discussed in our previous report that, Stochastic of the daily basis was able to push the metal slightly upwards. This clam incline couldn't change the bearish picture of the suggested bearish classical pattern as the metal is still controlled within the descending channel. Henceforth, potential downside movements could be witnessed during this week, supported by negative sign appearing on AROON. Assessing intraday basis, the secondary image shows clear overbought sign on William % R indicator over four-hour interval.
The trading range for this week is among the key support at 17.50 and key resistance now at 18.75.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver from 18.25 targeting 17.60 and stop loss above 18.75 might be appropriate.|