Weekly Report 29/08 -02/ 09/ 2011

Silver stabilized above 50% Fibonacci correction as shown above, while Stochastic provides positive crossover. These signs support the possibility of forming the Bat harmonic pattern, where the pattern's CD leg represents AB=CD harmonic pattern. Therefore, we expect silver to extend the upside movement this week, while stability above 38.60 is necessary for our expectations to prevail, but stability above 39.75 should keep our positive expectations strong.

The trading range for this week is among the key support at 37.30 and key resistance now at 44.35

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

Previous Report

 
Support40.9040.4040.1039.7539.10
 
Resistance41.7042.1542.7043.0043.25
 
RecommendationBased on the charts and explanations above, we recommend buying silver around 40.90 and take profit in stages at (41.70, 42.95 and 44.35) and stop loss with daily closing below 39.75 might be appropriate. We recommend tracking silver’s movement by checking our daily reports.