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.
|Recommendation||Based 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.|