Morning report

Silver declined sharply activating yesterday's bearish anticipation via reaching the technical target of 16.25. The daily candlesticks structure as shown on the subsidiary image shows that the metal is still preparing for additional negative actions after a slight correction. The previous breakout occurred below the up trend line of the momentum supports our scenario which is based on the short and medium term negative harmonic formation. Therefore we keep our overview to the downside over the intraday basis.

The trading range for today is among the key support at 14.90 and key resistance now at 17.35.

The general trend is to the upside as far as 10.95 remains intact with targets at 18.50.

RecommendationBased on the charts and explanations above our opinion is, selling silver from 16.40 targeting 15.80 and stop loss above 16.90 might be appropriate.