Weekly Report 09/01 -13/01/ 2012
The bullishness stopped and the metal retreated to areas below 29.05, which represents 38.2% Fibonacci correction of the CD leg of the bullish Bat harmonic pattern. In fact, we cannot negate the Bat harmonic pattern, where any trading above 27.10 supports the return of the upside move, while consolidation with 4-hour closing above 29.05 could trigger another bullish attempt. Therefore, we remain positive this week, yet heavy fluctuations and downside correction could occur.
The trading range for this week is among the key support at 23.40 and key resistance now at 31.25.
The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact.
**New York Candlesticks**
|Recommendation||Based on the charts and explanations above, our opinion is buying silver above 27.60, and take profit in stages at (28.10 and 29.05) and stop loss with 4-hour closing below 26.05 might be appropriate|