Weekly Report 16/01 -20/01/ 2012

Stabilityabove 29.05 suggests that silver could provide more attempts to reach the second target of the bullish Bat harmonic pattern, where this target represents 61.8% Fibonacci correctional levelat 30.80. In fact, Stochastic is negative and silver is stable below the simple moving average 50 at 30, which could trigger heavy fluctuations and maybe downside corrections. But, RSI and trading above 38.2% Fibonacci correctional levelof the CD leg of the bullish Bat harmonic pattern are sufficient for our positive outlook to remain valid this week.

The trading range for this week is among the key support at 24.75 and key resistance now at 32.10.

The short-term trend is to the downside with steady weekly closing below 38.00 targeting 20.05.

**New York Candlesticks**

Previous Report

 

Support
29.05
28.60
28.10
27.60
27.10

 

Resistance
30.30
30.85
31.25
31.80
32.10

 

Recommendation
Based on the charts and explanations above, our opinion is buying silver above 29.05, and take profit in stages at (30.80 and 32.10) and stop loss with 4-hour closing below 28.10 might be appropriate