Silver Technical Precious Metals (2012-02-06)

Silver is still stable in areas above 33.00-32.80, but the metal is also unable to settle above 34.25, which negated the upside move expected in our previous report. The metal returned now to trade negatively, but inside an ascending channel. The candlestick formation shown above is negative around the top of 34.40, which could trigger an attempt to breach the main support of the ascending channel. In case the metal breached the level of 33.00-20, we expect the downside movement to return significantly to retest areas around 32.45 and maybe around 31.25. RSI provides a negative crossover which supports our expectations.

The trading range for this week is among the key support at 30.20 and key resistance now at 35.70.

The short-term trend is to the downside with steady weekly closing below 38.00 targeting 20.05.

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