Weekly Report 13/06 -17/ 06/ 2011

Back to the previous proposed Elliott count, the price is moving downwards confirming C wave of ZZ wave. Hence, more bearishness could be seen as far as trading remains below 37.40; while 38.90 protects the bearishness. Momentum indicators reflect an oversold case and that might cause fluctuations but we don't think the direction will be changed.

The trading range for this week is among the key support at 31.25 and key resistance now at 38.90.

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

Support35.5035.3534.8534.3533.90
Resistance36.3536.8537.0037.4538.05
RecommendationBased on the charts and explanations above our opinion is, selling silver around 36.35 gradually targeting 35.35,34.85 and 33.90 , while the stop loss is a daily closing above 37.40 might be appropriate.