Weekly Report 26/09 -30/ 09/ 2011

The metal declined sharply during the past week affected by the breach of 39.10 and then 38.80, but the downside movement extended towards 38.2% and 50% Fibonacci corrections of the long-term upside wave as shown above. Consolidation below 50% at 29.15 suggests more downside movement towards 61.8% Fibonacci correction around 24.25 and maybe the critical support at 22.40 as shown above.

The trading range for this week is among the key support at 22.50 and key resistance now at 31.20.

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

Previous Report

Support27.1526.1025.5524.9524.25
Resistance28.8529.1530.2030.8531.20
RecommendationBased on the charts and explanations above, we recommend selling silver below 28.85 and take profit in stages at (26.10 and 24.25) and stop loss above 30.20 might be appropriate.