Silver Technical Precious Metals (2011-03-11)

By @ibtimes on

Morning Report

The strong bearish rally, which occurred yesterday, succeeded on achieving a four hour closing below 35.00 levels and thus the classical scenario has failed. Actually, the bearish harmonic AB=CD pattern offered the probability of being completed earlier without touching 37.20 zones, where 224% Fibonacci projection of BC leg exists. The negativity of Stochastic and RSI becomes clearer and that is why we believe that the bearishness will continue over upcoming period. The technical objectives of this pattern reside at 38.2% Fibonacci retracement of CD leg, noting that 23.6% might be a technical obstacle that may slow down the movements before touching 32.82 gradually.

The trading range for today is among the key support at 32.82 and key resistance now at 37.20.

The general trend over short term basis is to theupside,targeting 39.05 as far as areas of 30.80 remain intact with weekly closing.

Previous Report

Weekly ReportSupport35.0034.8034.6034.3034.15Resistance35.3035.5035.6535.8536.00RecommendationBased on the charts and explanations above our opinion is, selling silver around 35.65 targeting 32.85 and stop loss with a four hour closing above 36.30 might be appropriate.

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