Weekly Report 01/08 -05/ 08/ 2011
The level of 40.40 was able to stop silver's positive momentum, where this level stands before the critical level of 41.20 as shown above on the chart. Silver is trading around 23.6% Fibonacci correction of the upside wave which started at 33.15 and closed at 41.44. While consolidation below this level, could support the metal to retest 38.25 and maybe 37.30. The RSI is turning negative, which supports our negative expectations for this week.
The trading range for today is among the key support at 37.30 and key resistance now at 41.70.
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 chart and explanations above we recommend selling silver around 39.75 and take profit in stages at 38.70, 37.95 and 37.30 and stop loss with daily closing above 40.40 might be appropriate|