Morning report

It seems that the metal insisted on reaching the ideal target of the harmonic structure at 127% Fibonacci of [XA] leg at 17.35 zones as it temporarily ignored 76.4% Fibonacci of the bearish rally from 19.50 to 8.40. Therefore we think that silver will correct mildly towards 16.85, where it could gather the momentum it needs to incline towards the above mentioned projected target of CD leg at 17.35 areas.

The trading range for today is among the key support at 15.75 and key resistance now at 17.90.

The general trend is to the upside as far as 10.95 remains intact with targets at 17.90.

RecommendationBased on the charts and explanations above our opinion is, buying silver from 16.85 targeting 17.35 and stop loss below 16.40 might be appropriate.