Silver Technical Precious Metals (2011-07-20)

By @ibtimes on

Morning Report

Silver declined sharply as expected and as we believed areas of 41.20 was very strong and caused a downside correction indeed. Currently, the metal is fluctuating heavily, but we still expect further downside movement to retest mainly 37.05. The 37.95 level acts as a minor support, but consolidation below 40.40 supports our expectation; while a breach of 41.20 will negate our expectations.

The trading range for today is among the key support at 37.05 and key resistance now at 41.20.

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

Weekly Report

Support39.1038.9038.2537.9537.45Resistance39.7540.2040.4040.9041.20RecommendationBased on the charts and explanations above our opinion is selling silver around 39.75 and take profit in stages at 37.95, 38.90, and stop loss with 4-hour closing above 40.40 might be appropriate

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