Weekly Report 27/06 -01/ 07/ 2011

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The bearishness continued dominating the movements since the suggested Elliott sequence has proved its efficiency as we believe that we are witnessing C wave of the ZZ formation. Momentum indicators are showing oversold signs and that might cause huge fluctuation but trading below 34.50 will bring additional negative actions. Stability below 33.05 will solidify our Elliott scenario.

The trading range for this week is among the key support at29.80 and key resistance now at 36.35.

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

Support33.9033.3033.0032.8032.45
Resistance34.3534.5035.0035.6536.00
RecommendationBased on the charts and explanations above our opinion is, selling silver around 34.35 gradually targeting 33.05,32.45 and 31.25, while the stop loss is a daily closing below 35.65 might be appropriate.