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.
|Recommendation||Based 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|