Weekly Report 23/5 -27/ 05/ 2011

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Silver inclined after touching 34.35 as we suggested in our previous harmonic scenario which we will discuss in the coming report. Now, the proposed Elliott sequence shows that B of ZZ wave is in progress. Touching 36.35 is possible and a break of which will bring more buying pressures towards 38.90. Stability with daily closing above 33.05 is required and preferably above 33.90 zones.

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

Support34.8533.9033.7533.0532.85
Resistance34.8535.3535.5036.4036.90
RecommendationBased on the charts and explanations above our opinion is, buying silver around 34.50 gradually targeting 36.35,37.20 and 38.90 , while the stop loss is a daily closing below 33.05 might be appropriate.