Yesterday's sharp inclines damaged the expected bearishness of this week, but at the same time the metal failed to maintain levels below 36.05 zones and thus yesterday's anticipated bearish wave has failed. Meanwhile, silver is trading around 37.20 where the daily closing was achieved above it and may cause more upside movements towards 39.00 zones. Consequently, our captured AB=CD pattern is to be reconsidered, taking 17.74-recorded on September 24, 2010- as the start point of AB=CD pattern. Thereby, BC leg represented 38.2% Fibonacci of AB leg, indicating that 261.8% at 39.00 will be our target. Conversely, if it couldn't stabilize above 37.20, the previous suggested bearish harmonic pattern will remain valid. To conclude, we need another daily closing to make our decision, so thatthe neutrality is in favor until we see how silver will behave around 37.20 zones.
The trading range for today is among the key support at 35.35 and key resistance now at 39.00.
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, staying aside until a clearer signs appears to pinpoint the upcoming big move.|