Weekly Report 02/01 -06/01/ 2012
Silverhas been able to form abullish Bat harmonic pattern, which remains validso long as the pair is stable above 27.10. Stochastic is still positive, while the Relative Strength Index is turning positive. Therefore, we expect silver to incline asfar as the metal is stable above 26.05, while above 27.10 is much better. Of note, the suggested upside move is only a normal correction of the sharp decline seen earlier.
The trading range for this week is among the key support at 23.40 and key resistance now at 30.80.
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 buying silver above 27.10, and take profit in stages at (28.10 and 29.05) and stop loss with 4-hour closing below 26.05 might be appropriate|