Silver Technical Precious Metals (2012-05-02)

Silver failed again to settle above 31.25, but still, the metal is stable above the critical level of 30.40. Trading between these levels triggered heavy fluctuations, but consolidation above 31.25 might be sufficient for us to expect an upside move today. A breach of 30.40 and stability below it will negate the suggested positive scenario.

The trading range for today is among the key support at 29.60 and key resistance now at 32.85.

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

***New York Candlesticks***

Previous Report

Weekly Report

Support
30.80
30.40
29.90
29.60
29.05

Resistance
31.00
31.25
31.60
31.80
32.00

Recommendation
Based on the charts and explanations above, our opinion is buying silver with a breach of 31.25 and taking profit in stages at 32.00, 32.45 and 32.85 and stop loss below 30.40 might be appropriate