Silver Technical Precious Metals (2012-02-28)

By @ibtimes on

Morning Report

Silver attempts to confirm stability above the descending main resistance of the downside movement, which started at the top of 49.83 as shown on the minor image. This is accompanied with a continuous effect of the bullish Bat harmonic pattern, which remains effective as long as the metal is above 33.65, while it remains significantly effective as the metal is above 34.65. But, consolidation above 127.2% Fibonacci of the CD leg at 35.75 is necessary to negate the negative effect of momentum indicators. Consolidation above 35.75 could support the upside move to extend during the session today.

The trading range for today is among the key support at 33.65 and key resistance now at 38.00.

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

***New York Candlesticks***

Previous Report

Weekly ReportSupport35.0534.6534.2534.0033.65Resistance35.7536.2036.8037.2537.80RecommendationBased on the charts and explanations above, our opinion is buying silver around 35.05, and take profit in stages at (36.20, 37.25 and 38.35) and stop loss with 4-hour closing below 34.00 might be appropriate

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