Weekly Report13/12 -17/ 12/ 2010

Silver touched the second technical objective of the bearish harmonic butterfly pattern at 61.8% Fibonacci of CD leg. We still believe that the metal may achieve additional targets at 76.4% around 27.40, followed by 100% at 26.40 as far as trading remains below 30.35. We need a breakout below, accompanied by a four hour closing below 28.05 to confirm resuming the projected bearishness.

The trading range for this week is among the key support at25.50 and key resistance now at 31.20.

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.

Support28.6028.4528.0527.9027.25
Resistance29.0529.5529.8530.0030.35
RecommendationBased on the charts and explanations above our opinion is, selling with a four hour closing below 28.05 targeting 26.40 and stop loss with a four hour closing above 29.05 might be appropriate.