Weekly Report (June 20-24, 2011)
Silver failed to stabilize above 36.35 supporting the strength of the suggested count that shows the metal is now trading within the bearish wave C of the Zigzag. Therefore, we expect a downside move this week and require stability below the level mentioned and confirmed with four-hour closing below 35.00. Stochastic provided a negative crossover while RSI is attempting to breach the 50 points to the downside supporting our expectations.
The trading range for this week is among the key support at 32.20 and key resistance now at 38.05.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is selling silver around 35.85 and take profit in stages at 35.00, 34.35, 33.90 and stop loss with daily closing above 37.40 might be appropriate this week|