Silver Technical Precious Metals (2011-05-09)

By @ibtimes on

Weekly Report 09/05 -13/ 05/ 2011

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The current bearish wave is not just a correction for the upside rally from 26.36 but it seems that we are facing a corrective direction of the bigger time intervals for the upside wave started in 2008. Let us focus on the internal count of the present bearish wave where we suggest a new IM wave of a bigger ZZ wave. To recap, as far as trading remains below 42.10 zones, the bearishness will continue and stability below 39.10 will strengthen this negative scenario. Carefully note that silver is drawing the fourth wave and it is an upside wave that will relax momentum indicators before achieving the possible bearish direction.

The trading range for this week is among the key support at 31.40 and key resistance now at 42.65.

The general trend over short term basis is to the downside,targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.

Previous ReportSupport35.5035.3535.0034.6034.30Resistance36.4536.9037.2037.6038.05RecommendationBased on the charts and explanations above our opinion is, selling silver around 39.10 gradually targeting 36.35,34.60 and 33.05 , while the stop loss is a daily closing above 42.10 might be appropriate.

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