Silver Weekly Technical Report 1-5/10/2012

SMA 20 held its stance during the previous week as seen on the provided daily chart but also 35.00 psychological level has been recast as a solid ceiling. Trading outside the ascending channel that dominated the movements from 26.75 boundaries to 35.00 level in addition to the negativity on RSI 14 and MACD traditional argue us to suggest potential downside movements during the upcoming sessions, mainly targeting 32.40 areas. To be prudent, we shouldn’t enter the market until the metal takes out 33.90 decisively. 

The trading range for this week is expected among the key support at 32.40 and key resistance at 36.00.

The short-term trend is to the upside with steady weekly closing above 26.00 targeting 50.00.


Support    33.90    33.20    33.00    32.65    32.40
Resistance    34.85    35.10    35.70    36.00    36.50
Recommendation    Based on the charts and explanations above our opinion is, selling the metal below 33.90 targeting 32.40 and stop loss above 35.10 might be appropriate.