Weekly Report 30/5 -03/ 06/ 2011

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With the opening of this week, we can see how silver is trapped between 38.2% and 23.6% Fibonacci levels of A wave according to the proposed Elliott count. The probability of forming A wave is still valid within the ZZ formation. To confirm this scenario, we need to witness a breakout below 36.35 to indicate that B wave is over and C wave will be in progress. To conclude, the bearishness is in favor during this week but not before breaching the aforesaid level.

The trading range for this week is among the key support at 33.90 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.

Support37.6037.2036.9036.3535.50
Resistance38.0538.5038.9039.2539.85
RecommendationBased on the charts and explanations above our opinion is, selling silver with a breakout below 36.35 gradually targeting 36.35,34.85 and 33.90 , while the stop loss is a daily closing above 37.60 might be appropriate.