Weekly Report 03/01 -07/ 01/ 2011

The potential harmonic formation may carry the metal towards 31.40 or 31.95 and areas of 32.35-32.55 are under microscope also. This harmonic formation will remain valid as far as the stability continues above 30.60-support of X point-. Momentum indicators are showing clear overbought signs that may lead to some kind of fluctuation but the stable move above 30.60 will make us expect possible bullishness during this week.

The trading range for this week is among the key support at 29.05 and key resistance now at 32.55.

The general trend over the short term basis is to the upside targeting $ 32.55 per ounce as far as areas of 29.80 remain intact.

Previous Report

Support30.8530.6030.3530.1029.85
Resistance31.2031.4031.9532.3532.55
RecommendationBased on the charts and explanations above our opinion is, buying silver around 30.85 targeting 32.55 and stop loss with a daily closing below 30.00 might be appropriate.