Silver Technical Precious Metals (2011-01-12)

By @ibtimes on

Morning Report

Stochastic is showing overbought sign but silver has evidently inclined. When we look at the upside movements of the last two days including today, we will notice that the metal is trapped between contracting support and resistance; henceforth, a break of the major support of 29.60 followed by trading below 29.40 will affect the metal negatively since the harmonic butterfly pattern is still valid. As a consequence, the bearishness might dominate the movements over intraday basis and it will be confirmed with breaching the aforesaid levels.

The trading range for today is among the key support at 28.05 and key resistance now at 30.85.

The general trend over short term basis is to thedownside targeting 23.60 as far as areas of 30.80 remain intact with weekly closing.

Previous Report

Weekly ReportSupport29.6029.4029.2029.0028.75Resistance29.7529.8530.0030.1530.35RecommendationBased on the charts and explanations above our opinion is, selling silver around 29.75 targeting 28.05 and stop loss with a four hour closing above 30.15 might be appropriate.

Join the Discussion