Weekly Report 21/03 -25/ 03/ 2011
The metal declined; testing 35.55 and now at .600 GMT we can see bullish movements after achieving a gap with the opening of this week. This inclines couldn't damage the bearish harmonic structure that could send silver lower towards 32.82 but at the same time, Stochastic is positive. Levels of 36.05 and 37.20 are the potential reversal zones of our captured harmonic pattern and trading below D 2 is a bearish indication; while a daily closing above 36.05 will take us towards 37.20. A stable move above 37.20 will negate this harmonic study.
The trading range for this week is among the key support at32.85 and key resistance now at 39.05.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver around 36.05 , gradually targeting 35.20, 34.30 and 32.82; while the stop loss is a daily closing above 37.20 might be appropriate.|