Weekly Report 16/05 -20/ 05/ 2011

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Stability above 33.05 is a reasonable factor that makes us suggest that A wave of the ZZ wave has ended. Forming internal five waves is required to confirm this technical idea. To recap, we may witness a bullish correction during this week and we need to see the price above 34.85 zones to solidify this Elliott count. In general, stability above 33.05 makes it valid.

The trading range for this week is among the key support at 30.30 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 Report

Support34.1533.9533.7533.0532.45
Resistance34.8535.3535.5036.4536.90
RecommendationBased on the charts and explanations above our opinion is buying silver around 34.15 gradually targeting 36.35,38.90 and 40.90 , while the stop loss is a daily closing below 33.05 might be appropriate.