Silver Weekly Technical Report 15-19/10/2012

 Silver continued to move lower to breach 33.30 support; and retest the 61.8% Fibonacci level and the 50-days SMA around 33.00. The price is currently stuck among both levels, where a push below 33.00 could extend the correction towards 32.00 areas, however if we witness such extension of the bearish correction that would provide another opportunity to long the metal from levels among 32.00-32.50. Accordingly, the bullish trend is expected to resume this week .

The trading range for this week is expected among the key support at 32.00 and key resistance at 35.40.

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

Support    33.20    32.65    32.40    31.90    31.50
Resistance    33.30    33.50    34.20    34.90    35.10
Recommendation    Based on the charts and explanations above, we recommend buying silver around 32.40 targeting 33.50 and 35.00. Stop loss with four-hour closing below 31.90