Weekly Report 30/08 -03/ 09/ 2010

On the daily basis, we captured a bearish harmonic AB=CD pattern, where its BC leg has corrected 76.4% of AB and according to the alternation principle the Fibonacci level of 127% could be the level of reversal. Stochastic is currently attempting to overlap negatively. Thus; potential bearish actions could be seen during this week as far as 19.55 remains unbroken by a daily closing above it.

The trading range for this week is among the key support at 18.05 and key resistance now at 20.00.

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 with a breakout below 19.05 targeting 18.30 and stop loss above 19.60 might be appropriate.