Weekly Report 23/08 -27/ 08 / 2010

The secondary image shows a clear bearish candlestick structure as the resistance line of the bearish channel has been able to force the metal to show aggressive downside actions on past Friday. The previous pivotal support of 18.25 -current resistance- is breached and that could add further negative pressure on the metal. These declines suggest that the allover bearish classical pattern is still in progress and therefore, additional bearishness could be witnessed during this week.

The trading range for this week is among the key support at 17.30 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.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling silver around 18.10 targeting 17.35 and stop loss above 18.70 might be appropriate.