Silver Technical Precious Metals (2012-01-30)

By @ibtimes on

Weekly Report: (30 Jan-3 Feb)

Our negative expectations failed after the consolidation above 32.75, and now we recognize a bullish Bat harmonic pattern over the daily chart. The metal trades now in areas around the top of (C) point, but without providing stability above this level, while we find the momentum indicators are within overbought areas. These factors suggest the return of the downside movement, retesting areas around 32.75-80 and maybe 32.05, where consolidation below the top of (C) point at 33.70 could trigger the mentioned bearish retest. In fact, consolidation above 33.70 is necessary for the upside move to test the extended target 127.2% of the harmonic structure at 35.70.

The trading range for today is among the key support at 30.30 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

Support33.0032.7532.1031.6031.30Resistance33.7534.2534.6035.1035.70RecommendationBased on the charts and explanations above, our opinion is selling silver around 33.40, and take profit in stages at (32.75 and 32.05) and stop loss with 4-hour closing above 33.80 might be appropriate

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