Silver Technical Precious Metals (2011-03-01)

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Morning Report

Silver inclined approaching 34.15 levels gradually once more, and as previously discussed these levels represent the potential reversal zones of the bearish harmonic AB=CD pattern over daily basis. Stochastic is starting to be positive, but RSI 14-valued at 70.00- is moving within overbought areas, signaling weakness of the current bullish wave. Thereby, we keep our bearish predications intact over intraday basis. Note that areas of 34.30 should remain intact with a daily closing to keep this harmonic scenario valid.

The trading range for today is among the key support at 32.20 and key resistance now at 35.10.

The general trend over short term basis is to thedownsidetargeting 29.40 as far as areas of 35.10 remain intact with weekly closing.

Previous Report

Weekly ReportSupport33.6033.3033.1033.0032.85Resistance34.0534.1534.3034.8035.10RecommendationBased on the charts and explanations above our opinion is, selling silver around 34.05 targeting 32.20 and stop loss with a daily closing above 34.30 might be appropriate.

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