Silver Technical Precious Metals (2011-02-08)

By @ibtimes on

Morning Report

Silver is steady above 76.4% correction of CD of the AB=CD bullish pattern. This increases the likelihood for the metal to rise towards the top C at 29.80 and stability above it will extend the upside wave towards 127% correction of the same leg at 30.72. Stochastic and RSI are trading in overbought areas, though stability above the main support for the upside channel keeps the suggested scenario valid.

The trading range for today is among the key support at 28.15 and the key resistance at 30.72.

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.Support29.0528.9528.7528.4528.25Resistance29.4629.6029.8030.0030.15RecommendationBased on the charts and explanations above, our opinion is buying silver around 29.05 targeting 30.15 and stop loss with four-hour closing below 28.45 might be appropriate

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