Weekly Report 14/03 -18/ 03/ 2011
Silver bounced sharply, but when we look at the daily graph we will be able to see a bearish harmonic AB=CD pattern that is still in progress. This forces us to look for a point, where the bearishness will be confirmed. A break of 35.20, accompanied by a daily closing below it- the secondary image explains the reason- will bring a bearish wave but on the other hand, a breakout above 36.05 will push the metal upwards, targeting 37.20, where another PRZ- potential reversal zones-for the pattern exist.
The trading range for this week is among the key support at 32.00 and key resistance now at 37.15.
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 ReportSupport35.2035.0034.6034.3034.15Resistance36.0536.3036.9037.2037.50RecommendationBased on the charts and explanations above our opinion is, selling silver with a daily closing below 35.20 targeting 32.85 and stop loss with a four hour closing above 35.60 might be appropriate.