Silver Weekly Technical Report 14-18/1/2013

Silver continues to trade below the broken major support level at 31.00, and that suggests further downside for the metal within the upcoming period. On the other hand, silver has drawn a major bullish hammer candlestick above 29.00 level, while RSI is showing a strong positive divergence. Accordingly, the conflicting technical signals force us to stay aside, awaiting further confirmation. 

The trading range for this week is expected among the key support at 28.00 and key resistance at 33.00.

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

Support 29.60 29.20 28.50 28.00 27.50

Resistance 31.00 31.45 31.95 32.50 33.00

Recommendation Based on the charts and explanations above, we recommend staying aside awaiting further confirmation