Silver Technical Precious Metals (2011-05-20)

By @ibtimes on

Morning Report

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The correction was limited at 38.2% Fibonacci of BC leg of 5-0 pattern and it didn't reach 50% level at 34.35 zones. The rules of this aforesaid pattern are clear and we need to see the price around 50% to clarify that the pattern is completed. We still see chances for more upside actions over intraday basis but 34.50-34.35 could be retested first to approve the 5-0 pattern.

The trading range for today is among the key support at 32.20 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 ReportSupport34.8534.5034.3534.0033.60Resistance35.6535.8536.1536.8037.45RecommendationBased on the charts and explanations above our opinion is, buying silver around 34.50 gradually targeting 35.85,36.15 and 37.45 , while the stop loss is a daily closing below 33.60 might be appropriate.

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