Silver Technical Precious Metals (2011-01-20)

By @ibtimes on

Morning Report

Without a daily closing above 29.45, our weekly expectations remain valid, and we say how silver declined rapidly to trade below the resistance for the AB=CD pattern shown on the right; where its PRZ resides with the most important target for the bearish harmonic Butterfly Pattern, shown to the left. Continued trading below 29.45 and 29.85 keeps the bearish possibility valid, while trading below 29.05 might accelerate the bearishness further.

The trading range for today is among the key support at 26.90 and the key resistance at 29.85.

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 ReportSupport28.6028.4528.0527.9027.55Resistance28.7529.0529.2029.6029.85RecommendationBased on the charts and explanations above, our opinion is selling silver around 28.75 targeting 26.90 and stop loss with four-hour closing above 29.60 might be appropriate

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