Weekly Report 25/04 -29/ 04/ 2011

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The provided daily chart offers the probability of forming a bearish harmonic AB=CD pattern, which its CD leg achieved an acceleration for the bullishness from C point at 26.40 zones without clear corrections. The extended Fibonacci of AB leg of 224% becomes very close and it might present potential reversal zones. We will depend on the extreme overbought sign of RSI 14, which is presently valued at 91.50 in addition to the solidity of the psychological level of $50.00 per ounce to suggest a potential downside recovery during this week, noting that the movements reflect high volatility.

The trading range for this week is among the key support at 44.10 and key resistance now at 52.25.

The general trend over short term basis is to theupside targeting 50.20 as far as areas of 42.10 remain intact with weekly closing.

Previous Report

Support48.2047.3046.8046.1045.50
Resistance49.5050.0051.2551.7552.25
RecommendationBased on the charts and explanations above our opinion is, selling silver around 49.50 targeting 46.10 and stop loss above 51.75 might be appropriate.