Weekly Report 06/12 -10/ 12/ 2010

Silver inclined sharply stabilizing above 28.15 as prices are positive in an attempt to stabilize above D 1 of the suggested harmonic formation, which may send the metal towards D 2 around 30.34. Note that the harmonic pattern is bearish and thuswe should be careful, despite of our expectations for temporal upside move. Momentum indicators show overbought signs.

The trading range for this week is among the key support at27.25 and key resistance now at 30.85.

The general trend over the short term basis is to the downside targeting $ 22.95 per ounce as far as areas of 29.80 remain intact.

Previous Report

Support29.2028.9528.1527.9027.25
Resistance30.0030.1030.3430.5530.85
RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.