Weekly Report 10/10 -14/ 10/ 2011

After the incline seen on Friday, the metal declined sharply proving the strength of 33.15 levels, which precedes 33.70 as shown above on the chart, where this level represents the neckline of the bearish technical structure. Stochastic is negative and could lead another downside movement. But, consolidation above 33.70 is able to lift the pair towards 35.10 at least.

The trading range for this week is among the key support at 27.15 and key resistance now at 35.10.

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 selling silver around 32.85 and take profit in stages at (30.85 and 29.05) and stop loss with daily closing above 33.70 might be appropriate.