Silver Technical Precious Metals (2011-01-31)

By @ibtimes on

Weekly Report

According to our previous report, silver inclined sharply and approached the second target for the bullish AB=CD pattern. Silver declined from those areas affected by the negative crossover on Stochastic which might drive the metal lower this week. Nevertheless, we believe that not reaching the target at 61.8% correction of CD leg signals that silver might attempt again to reach this target and might continue towards the extend targets starting from 76.4% correction at 28.95.Therefore, trading above 26.5-26.00 keeps the upside potential valid for this week.

The trading range for this week is among the key support at 26.00 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.Support27.6527.5527.2527.1526.70Resistance28.0528.3028.5028.8029.00RecommendationBased on the charts and explanations above, our opinion is buying silver around 27.55 targeting 28.93 and stop loss with daily closing below 26.50 might be appropriate this week

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