Weekly Report 18/04 -22/ 04/ 2011

Silver continued its upside move but the price is currently trading around the major resistance of our caught ascending channel. Meanwhile, the probability of placing a top for the fifth wave of the IM wave increased since momentum indicators are showing clear overbought signs. Moreover, there is a gap occurred with the opening and it might be covered. We need to witness stability below 42.50 to confirm our proposed bearish outlook.

The trading range for this week is among the key support at 40.20 and key resistance now at 34.63.

The general trend over short term basis is neutral until we see how the metal will behave around 42.05-42.30 zones during this week.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling silver around 43.25 gradually targeting 42.50, 41.80 and 40.60 , while the stop loss is a daily closing above 44.63 might be appropriate.