Silver Technical Precious Metals (2011-05-12)

By @ibtimes on

Morning Report

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The metal declined respecting yesterday's suggested outlook; we believe that the fifth wave is in progress. It could be a truncated wave since the price is stable above 200% of the first IM wave -colored in dark blue-. Today we prefer to wit until we witness a breakout below 34.80 to confirm resuming the bearishness. A break of which will send the metal towards 33.05 and a break of this level will take us towards 30.30. We recommend reviewing the weekly report for more details about the achieved targets.

The trading range for today is among the key support at 30.25 and key resistance now at 38.50.

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 Report

Weekly ReportSupport34.8034.0033.7533.0532.45Resistance35.6535.9036.8037.4538.10RecommendationBased on the charts and explanations above our opinion is, selling silver with a breakout below 34.80 gradually targeting 33.65,33.05 and 31.25 , while the stop loss is a four hour closing above 36.80 might be appropriate.

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