Silver Technical Precious Metals (2012-05-04)

Silver breached 61.8% Fibonacci correction at 30.40, which might support the metal to retest areas around 78.6% Fibonacci correction at 28.50 later. Furthermore, the metal is trading below EMA20 and failed several times to settle above the resistance of 31.25. Therefore, we expect the downside movement to extend today. RSI is almost within oversold areas, but still the indicator is negative, which supports our bearish scenario to remain valid as long as stability below 31.25 remains intact.

The trading range for today is among the key support at 28.85 and key resistance now at 32.10.

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
29.90
29.60
29.05
28.85
28.50

Resistance
30.40
30.80
31.00
31.25
31.60

Recommendation
Based on the charts and explanations above, our opinion is buying silver below 30.40 and taking profit in stages at 29.60 and 28.50 and stop loss above 31.25 might be appropriate