Weekly Report 05/09 -09/ 09/ 2011

The suggested upside movement last week was seen, which formed the bearish bat harmonic pattern, where this pattern is originally negative and suggests a downside correction at the start of this week, unless a breach of 44.20 is seen. The awaited downside correction could force the metal to test the levels around 42.30 and maybe around 41.50 in case the first target was breached. But the suggested downside movement is only a correction within an upside longer-term trend.

The trading range for this week is among the key support at 39.10 and key resistance now at 45.00

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

Previous Report

Support42.7042.3041.5040.9040.40
Resistance43.2543.4543.6044.2044.80
RecommendationBased on the charts and explanations above, we recommend selling silver below 43.60 and take profit in stages at (42.70, 42.30 and 41.50) and stop loss with daily closing above 44.20 might be appropriate.