Silver Weekly Technical Report 21-25/1/2013

After breaching the 31.45 resistance level, silver headed higher currently testing the 50-days SMA, around 32.00, which is also near the 61.8% Fibonacci correctional level for the latest bearish wave. Meanwhile, strong bearish divergence is seen on momentum indicators over the lower time frames, which prevent us from expecting further gains for now, and anticipate a downside correction today.

The trading range for this week is expected among the key support at 30.00 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 31.80 31.45 31.00 30.65 30.00

Resistance 32.10 32.50 33.00 33.30 34.00

Recommendation Based on the charts and explanations above, we recommend selling silver around 32.00 targeting 31.50 and 30.70. Stop loss above 32.25