Weekly Report 28/03 -01/ 04/ 2011
Pulling back from the pivotal resistance of 38.15 is seen as an indication that PRZ of the previous explained bearish harmonic pattern -crab pattern- is still in favor. Thus, we may witness more descending actions during this week, targeting 38.2% of CD leg at 36.43, where a break of which will send the metal lower towards 61.8% at 35.35. Note that areas of 38.68 should hold to protect the proposed bearish harmonic scenario.
The trading range for this week is among the key support at34.30 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.
Previous ReportSupport36.9036.4536.0535.5035.35Resistance37.2037.5037.9538.1538.68RecommendationBased on the charts and explanations above our opinion is, selling silver around 37.00, gradually targeting 36.43, 36.05 and 35.35; while the stop is a daily closing above 37.95 might be appropriate.