Weekly Report 19/12 -23/ 12/ 2011
The level of 29.70, which represents 61.8% Fibonacci correction, is affecting the metal negatively as shown above on the chart. Stochastic failed to turn positive and is currently providing a negative crossover. This proves that the effect of the rising wedge pattern -bearish technical structure- remains valid and is affecting the metal significantly. Therefore, we expect a downside movement this week, testing areas around 28.10 again, as a breach of this level could sent the metal towards 27.15.
The trading range for this week is among the key support at 26.00 and key resistance now at 32.95.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
|Recommendation||Based on the charts and explanations above, our opinion is selling silver around 29.15, and take profit in stages at (28.10 and 27.15) and stop loss with 4-hour closing above 30.30 might be appropriate|