Weekly Report 21/11 -25/ 11/ 2011

Silver confirmed the breach of the ascending support level of the rising wedge, and then the metal declined sharply to settle below 38.2% Fibonacci correction at 32.95 and also below the Simple Moving Average 50 around 32.50 with the start of this week. These factors suggest that the downside movement could extend towards 30.30 basically. Therefore, we expect a downside movement to control the metal's movement during this week.

The trading range for this week is among the key support at 29.15 and key resistance now at 34.00.

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

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RecommendationBased on the charts and explanations above, our opinion selling silver below 32.95 and take profit in stages at (31.45 and 30.30) and stop loss with 4-hour closing above 34.00 might be appropriate.