Silver Technical Precious Metals (2012-04-30)

Silver settled above 31.25 again, with expectations the metal will attempt to breach the main resistance of the downside movement after reaching areas around 61.8% Fibonacci correction at 30.00. Consolidation above 31.50 and 31.85 might trigger an upside move, correcting the recent bearishness. We expect an upside move as long as the metal is above 30.40 this week, noting that consolidation above 31.25 supports our expectations.

The trading range for this week is among the key support at 29.60 and key resistance now at 33.65.

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

***New York Candlesticks***

Previous Report

Support
31.25
30.85
30.40
29.90
29.05

Resistance
31.80
32.00
32.45
32.85
33.00

Recommendation
Based on the charts and explanations above, our opinion is buying silver around 31.25 and taking profit in stages at 32.45 and 33.00 and stop loss below 30.40 might be appropriate