Weekly Report 11/07 -15/ 07/ 2011
The metal is threatening 36.75 levels without achieving a four hour closing above them. Stochastic is showing tendency to form a negative divergence with a bearish overlapping sign occurred with the opening of today's trading. Coming beneath 36.35 may prove the bearish predictions of the BAT pattern which is atypical pattern, particularly its CD leg. Stability above 36.75 would trigger a bullish wave targeting 37.75, followed by 39.00 zones where a CRAB pattern will be completed. As for now, we will hold onto our bearish predictions since we didn't get a four hour closing above 36.75 and we need a break back below 36.35 to confirm our outlook.
The trading range for this week is among the key support at 33.30 and key resistance now at 38.40.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver with a four hour closing below 36.35 gradually targeting 35.00 and 34.35 , while the stop loss is a daily closing above 36.75 might be appropriate.|