Weekly Report 18/07 -22/ 07/ 2011

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Stability above 39.10-60 was an evidence for ending the slight downside correction in the past week. Observing the chart above, we find the pair is stable above 38.2% Fibonacci correction at 39.10 shown above, and according to Fibonacci rules, consolidation above this correction suggests retesting the 50% Fibonacci correction, especially after the pair stabilized above the ascending support shown in blue above. Therefore, we conclude that any trading above 39.00-10 supports the suggested upside move, which could lead the pair to retest $41.05 per ounce.

The trading range for this week is among the key support at 37.00 and key resistance now at 42.50.

The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.

Previous Report

Support39.1038.4038.0037.4537.00
Resistance40.2040.7041.0541.5541.85
RecommendationBased on the charts and explanations above our opinion is buying silver around 39.10 and take profit in stages at 40.20, 41.05, and stop loss with 4-hour closing below 38.40 might be appropriate this week