Weekly Report 14/11 -18/ 11/ 2011
Silver rebounded to the upside after reaching areas around 32.95, which represents the base of the suggested Ascending Triangle formation as shown above on the first chart; in addition, these areas are close to the support level of the rising wedge pattern, where consolidation above this level suggests more attempts to breach the level of 35.10. Stochastic is currently within overbought areas, which could trigger some fluctuations and maybe downside corrections in attempts to retest the simple moving average 50 at 34.30, but we expect the metal to provide another bullish attempt; however a breach of 35.10, could support the metal to extend the upside move to retest the main resistance of the rising wedge pattern at 36.80, while a breach of this resistance could support the metal to achieve the Ascending Triangle's target at 37.25-80.
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.
**New York 4-hour Candlesticks**
|Recommendation||Based on the charts and explanations above, we recommend buying silver around 34.30 and take profit in stages at (35.05 and 36.20) and stop loss with daily closing below 32.95 might be appropriate.|