Weekly Report 23/01 -27/01/ 2012

The metal is within the formation of the Deep Crab harmonic pattern, and currently momentum indicators are within overbought areas accompanied with the metal approaching the potential reversal zone of the harmonic pattern. We expect the metal tostart adownside correctional movement, which remains strong as long as the metal is stable below 32.75 and remains valid with 4-hour closing below 33.40.

The trading range for this week is among the key support at 29.90 and key resistance now at 34.60.

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

**New York Candlesticks**

Previous Report

 

Support
32.10
31.80
31.25
30.85
30.30

 

Resistance
32.75
32.95
33.40
33.75
34.00

 

Recommendation
Based on the charts and explanations above, our opinion is selling silver around 32.40, and take profit in stages at (31.25 and 30.30) and stop loss with 4-hour closing above 33.40 might be appropriate