Weekly Report 12/09 -16/ 09/ 2011

Silver is still negatively biased since Friday's closing, but as shown above on the chart, there are several signs for the upside movement to return. Consolidation above 50% Fibonacci correction at 40.90 is the first positive sign, while stability above the critical support of the upside movement at 39.80 as shown in Green is the second sign, and finally consolidation above (B) point top of the suggested Bat harmonic pattern (the dark Blue) is the third one. Therefore, an upside movement is expected this week as long as the metal is stable above 38.80 and 39.80 is much better.

The trading range for this week is among the key support at 38.25 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

RecommendationBased on the charts and explanations above, we recommend buying silver around 40.90 and take profit in stages at (42.70 and 43.60) and stop loss with daily closing below 39.80 might be appropriate.