Silver is in a Ascending Triangle (Continuation) Formation Targeting $32.00

Date: 13 October 2010

SILVER TECHNICAL REPORT

TECHNCIAL OVERVIEW:

Loco silver (LSI) prices have spiked up sharply in the last month September 2010 closing up 12.20% from its previous month’s closing at $19.34. Looking at the Monthly chart the counter has given bullish Ascending Triangular breakout by breaching a resistance of $19.79 in September 2010.We expect bull trend to follow in silver in the long term.


LOCO SILVER MONTHLY CHART:

Observations:

Silver is in a Ascending Triangle (Continuation) Formation Targeting $32.00

• After a long consolidation between $ 19.80 and $14.50 for last 9 months, the counter has finally breached the $19.80 resistance and closed above $21.35 (17 March2008 ) Prices are in positive momentum as long as holds above $17.00

• The RSI is trading above 67.00 and has potential to move up further. MACD too has given a positive cross over which is likely to support the upside momentum

• Last but not the least; Directional Index too has given positive cross over in +DI and -DI, indicating the positive momentum in the prices.



POSITIONAL CALL: BUY LOCO SILVER $19.80-$20.80 ZONE FOR THE TARGET 1st $26.80 & TARGET 2nd $32.00 WITH SL OF $17.00, CMP $23.50


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Report By: Pradeep Karnani
Research Analyst Mobile: 09966028055
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