Silver Weekly Technical Report 8-12/10/2012

A strong bearish divergence is seen on the Relative Strength Index indicator, as the price is losing the bullish momentum. A retest of the low of the latest bearish correction at 33.30 is likely now. We expect the correction to extend further this week , however, within a period of range-trading. You should take into consideration that stability below 33.00 could result in deeper losses for the metal, on the other hand, a clear break above 35.40 will trigger the bullish continuation scenario.

The trading range for this week is expected among the key support at 32.00 and key resistance at 35.60.

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

Support    33.70    33.30    33.00    32.50    31.90
Resistance    34.50    35.00    35.40    36.00    36.50
Recommendation    Based on the charts and explanations above, we recommend selling silver below 35.00 targeting 34.00 and 33.40. Stop loss above 35.65