Weekly Report 31/10 -04/ 11/ 2011
Silver declined after it failed to consolidate above 50% Fibonacci correction of the bearish wave as shown above at 35.10. This move indicates that the metal could retest 38.2% Fibonacci correction at 32.95, which also represents the ascending triangle base level. The Relative Strength Index is negative, which could support the metal to provide the suggested retest. Therefore, we expect a downside movement.
The trading range for this week is among key support at 30.30 and key resistance at 37.80.
The general trend over short term basis is to thedownsidetargeting26.65as far as areas of48.50areas remain intact.
*NY candle closing*
|Recommendation||Based on the chart and explanations above, we recommend selling silver around 34.60 and take profit in stages at (33.85 and 32.95) and stop loss with daily closing above 35.25 might be appropriate.|