Weekly Report 27/12 -30/ 12/ 2011
Silver continued moving downwards affected by our major efficient bearish pattern -rising wedge- as seen on the provided four-hour chart. Actually, SMA 50 -colored in red- continued covering the metal since it breached 38.2% Fibonacci retracement of the entire downside rally from 43.35 to the significant low of 26.05. Now, coming below 23.6% is another technical catalyst that may send the metal lower during this week, supported by the negativity on AROON indicator. In the interim, Stochastic may cause some kind of fluctuation, but we don't think it can change the bearish trend. Areas of 26.05 are threatened, while the technical objective of the rising wedge resides at 26.70.
The trading range for this week is among the key support at 26.05 and key resistance now at 31.50.
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 our opinion is, selling silver around 29.25 targeting 26.70 and stop loss above 30.85 might be appropriate.|