The negativity returned to control silver's trading and now hovering around the support for the sideways range at 31.20. With stability above this level the upside move suggested earlier remains valid; we should note that a breach of the mentioned areas will be a very negative signal and will push the metal initially towards 30.00 then 28.85, while on the other end a breach of 31.80 will help silver extend the upside move towards the first main target at 33.15.
The trading range for this week is among the key support at 30.00 and key resistance now at 34.00.
The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact with weekly closing.
*The chart above is based on NY time*
|Recommendation||Based on the charts and explanations above our opinion is buying silver around 31.20 and take profit in stages at 32.00, 33.15 and stop loss with closing below 30.40 might be appropriate this week|