Weekly Report 07/11 -11/ 11/ 2011

Within the descending channel and over medium-term, we recognize a possible bullish rising wedge, which suggests some upside movement. The proposed upside move depends on the breach of 50% Fibonacci correction shown above at 35.10 and consolidation above it, where a breach of this level could support the current upside movement to extend further. A breach of 32.95 could negate the upside move and also trigger a bearish wave.

The trading range for this week is among the key support at 30.30 and key resistance now at 37.80.

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

Previous Report

 
Support34.0033.7533.4032.9532.00
 
Resistance34.6035.1035.6536.2036.80
 
RecommendationBased on the charts and explanations above, we recommend buying silver around 34.00 and take profit in stages at (35.05 and 36.20) and stop loss below 32.95 might be appropriate.